.

2023

CORPORATE PERFORMANCE
& PLANNING
BA(BBA)-641
CONSOLIDATED GROUP REPORT
GROUP NO. 05
SUBMITTED TO.
DR. DANISH AHMED SIDDIQUI

KUBS
UOK

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 GROUP HIERARCHY
MUHAMMAD RAYYAN
MAIN GROUP LEADER

MUHAMMAD RAYYAN MUNIBA FAZAL

GROUP A GROUP B
TEAM LEAD BY TAHSEEN ARSHAD TEAM LEADER

MUHAMMAD RAYYAN MUNIBA FAZAL

MUHAMMAD USMAN NISHA ZAFAR

MUHAMMAD AHMED UNZILA NAEEM

TAHSEEN ARSHAD HAFSA SHARIQ

AROOBA HASAN SOBIA AZHAR

SAMIA IQBAL RABIA ZAIB

MUNEEBA ALEEM

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GROUP MEMBERS AND THEIR PRESENTATIONS:

NUMBER OF
S.No. SEAT NO. NAME
PRESENTATION
1. EB-20542060 RABIA ZAIB 4
2. EB-20542052 MUHAMMAD RAYYAN 3
3. EB-20542054 MUHAMMAD USMAN SIDDIQUI 3
4. EB-20542047 MUHAMMAD AHMED KHAN 3
5. EB-20542056 MUNEEBA ALEEM 3
6. EB-20542057 MUNIBA FAZAL 3
7. EB-20542059 NISHA ZAFAR 3
8. EB-20542065 SAMIA KHAN 3
9. EB-20542076 SYEDA HAFSA SHARIQ 3
10. EB-20542075 SYEDA AROOBA HASAN 3
11. EB-20542078 SYEDA SOBIA AZHAR 3
12. EB-20542079 TAHSEEN ARSHAD 3
13. EB-20542080 UNZILA NAEEM 3

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ACKNOLEDGMENT:
I would like to thank our project supervisor, Dr. Danish Ahmed Siddiqui,
for his invaluable insights and guidance. His expertise and thoughtful
advice aided us throughout the project, allowing us to complete it
successfully.
My heartfelt gratitude goes to Mr. Muhammad Usman Siddiqui and
my group members, who worked throughout the duration of this
project, which would not have been completed without their relentless
efforts.
Finally, we would also like to thank our fellow classmates and family
members for their assistance and support in completing this project.
Thank you all for your contribution and support.

ENGRO FERTILIZER PAKISTAN:

Engro Fertilizer a fully
owned subsidiary of Engro
Corporation, is a premier
fertilizer manufacturing
and marketing company.
Having a portfolio of
fertilizer products with
significant focus on
balance crops, nutrition and increase yield. We strive to combine innovations and
quality with customer need and expectations with our wide portfolio of
renowned brands which includes brands like Engro Zarkhez, Zingro and Engro
DAP. The Engro fertilizer strives to uplift Pakistan agricultural sector by offering
innovative Agri-solutions to the farmer’s community across the country. Engro is
committed to strengthening its participation across the Agri-value chains and
look forward in building up our product portfolio.

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TABLE OF CONTENTS:
ACKNOLEDGMENT: .......................................................................................................................................... 3
ENGRO FERTILIZER PAKISTAN: ......................................................................................................................... 3
CHAPTER NO. 01 CREATING AND IMPLEMENTING A STRATEGY ....................................................................... 8
TASK 01: CONDUCT CURRENT SITUATION ANALYSIS: .................................................................................. 8
MARKET SHARE AND TOTAL SALES: ......................................................................................................... 8
FINANCIAL PERFORMANCE: ..................................................................................................................... 9
PRODUCTION CAPACITY AND EXPANSION PLAN: .................................................................................... 9
OPERATIONAL PERFORMANCE: ............................................................................................................. 10
TASK 02: DETERMINE PLANNING HORIZON: .............................................................................................. 11
PRODUCT DEVELOPMENT:..................................................................................................................... 11
MARKET TREND: .................................................................................................................................... 11
ECONOMIC CONDITION: ........................................................................................................................ 12
TASK 3: CONDUCT ENVIRONMENTAL SCAN: .............................................................................................. 13
ENVIRONMENTAL SCANNING ASSESSMENT VARIABLES: ....................................................................... 13
TASK 04: IDENTIFY KEY SUCCESS FACTORS:................................................................................................ 15
TASK 5: COMPLETE GAP ANALYSIS: ........................................................................................................... 15
TASK 6: CREATE VISION: ............................................................................................................................ 16
CREATING A VISION: .............................................................................................................................. 16
TASK 7: DEVELOPING BUSINESS STRATEGY: ............................................................................................... 16
TASK NO: 08 CREATE BALANCE SCORECARD: ............................................................................................. 17
FINANCIAL PERSPECTIVE OF ENGRO FERTILIZER: ................................................................................... 17
TASK NO 09: IDENTIFY TACTICS AND INITIATIVES: ..................................................................................... 18
IDENTIFY STRATEGIC OBJECTIVES AND INNITIATIVES OF ENGRO FERTILIZER: ........................................ 18
TASK NO: 10 EXECUTE STRATEGY: ............................................................................................................. 19
ECONOMICAL FACTOR ........................................................................................................................... 19
POLITICAL AND RGULATORY FACTOR: ................................................................................................... 20
ENVIRONMENTAL FACTOR: ................................................................................................................... 20
TECHNOLOGICAL FACTOR: ..................................................................................................................... 20
MARKET FACTOR: .................................................................................................................................. 20
SOCIAL FACTOR: .................................................................................................................................... 20
FINANCIAL FACTOR: .............................................................................................................................. 20
CONCLUSION: ............................................................................................................................................ 21
CHAPTER No. 02 ORGANIZATIONAL ARCHITECTURE: ..................................................................................... 22
ELEMENTS OF ORGANIZATIONAL ARCHITECTURE: ..................................................................................... 22
COMMUNICATION: ............................................................................................................................... 22
CORE COMPETENCIES: ........................................................................................................................... 23

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 COMPETETIVE INTELLEGENCE: ............................................................................................................... 24
TECHNICAL EXPERTISE OF ENGRO FERTILIZER: ....................................................................................... 25
ORGANIZATION CAPABILITY: ................................................................................................................. 26
PERFORMANCE APPRAISAL SYSTEM, TOOLS & FEEDBACK SYSTEM:........................................................... 26
HR SYSTEM AND POLICIES: ........................................................................................................................ 28
EQUAL OPPORTUNITY: .......................................................................................................................... 28
TRAINING AND DEVELOPMENT: ............................................................................................................ 28
PERFORMANCE MANAGEMENT: ................................................................................................................ 29
COMPENSATION AND BENEFITS: ........................................................................................................... 30
DIVERSITY AND NON-DISCRIMINATION: ................................................................................................ 30
ORGANIZATIONAL STRUCTURE: ................................................................................................................. 31
FUNCTIONAL STRUCTURE: ..................................................................................................................... 31
DIVISIONAL STRUCTURE: ....................................................................................................................... 31
TEAM-BASED STRUCTURE: .................................................................................................................... 31
FLAT STRUCTURE: .................................................................................................................................. 32
BUSINESS SYSTEM: .................................................................................................................................... 32
ANNUAL BUSINESS PLAN: ...................................................................................................................... 34
FINANCIAL ACCOUNTING SYSTEM ............................................................................................................. 36
FINANCIAL REGULATORS IN PAKISTAN: ................................................................................................. 37
CORPORATE CULTURE OF THE ENGRO FERTILIZER: .................................................................................... 37
CHAPTER NO. 03 TECHNOLOGICAL ARCHITECTURE ........................................................................................ 39
THE CONVENTIONAL VIEW OF TECHNOLOGICAL ARCHITECTURE: .............................................................. 39
PROBLEMS WITH CONVENTIONAL VIEW: .............................................................................................. 41
PROBLEMS WITH MIS PERFORMANCE MEASURES: ............................................................................... 42
BUILDING A STRATEGY-DRIVEN, PERFORMANCE MEASUREMENT-BASED MIS: ......................................... 43
Defining Strategic Objectives: ................................................................................................................ 44
Identifying Key Performance Indicators (KPIs): ...................................................................................... 44
Data Collection and Integration: ............................................................................................................ 44
Data Analysis and Reporting:................................................................................................................. 44
Dashboard Design and Visualization:..................................................................................................... 44
Continuous Monitoring and Improvement: ........................................................................................... 44
Leveraging Insights for Growth: ............................................................................................................. 45
MIS-CHANGE MANAGEMENT QUESTION: .................................................................................................. 45
3 PHASE MIS GUIDELINES FOR ENGRO FERTILIZER: ................................................................................ 47
SIGNIFICANCE OF MIS GUIDELINES FOR ENGRO FERTILIZERS: ................................................................ 49
CHAPTER NO. 04 PROCESS ARCHITECTURE .................................................................................................... 51
ENGRO APPROACHES TO PROCESS ARCHITECTURE: .................................................................................. 52
IMPORTANCE OF PROCESS ARCHITECTURE: ............................................................................................... 53

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 VALUE CHAIN ANALYSIS OF ENGRO FERTILIZER: ........................................................................................ 54
PRIMARY ACTIVITIES: ............................................................................................................................ 54
CREATE VALUE FOR ITS CUSTOMERS: ........................................................................................................ 55
IMPROVE VALUE FOR ITS CUSTOMERS: ..................................................................................................... 56
SUPPORT ACTIVITIES: ................................................................................................................................ 56
PHYSICAL LAYOUT OF ENGRO FERTILIZER: ................................................................................................. 57
ANALYSIS OF PHYSICAL LAYOUT OF ENGRO FERTILIZER: ........................................................................ 58
STEPS IN CONSTRUCTING A LAYOUT: ......................................................................................................... 59
ALIGNING THE PROCESS ARCHITECTURE: ................................................................................................... 60
BUSINESS MODEL: ................................................................................................................................. 61
CHAPTER NO. 05 THE CORPORATE (BALANCE) SCORECARD ........................................................................... 63
CORPORATE (BALANCE) SCORECARD? ....................................................................................................... 63
BALANCED SCORECARD APPROACH TO ENGRO FERTILIZER: .................................................................. 63
THE FOUR PERSPECTIVES OF THE CORPORATE SCORECARD: ................................................................. 63
HOW ENGRO FERTILIZER USES THE CORPORATE SCORECARD? .................................................................. 64
ENHANCING PERFORMANCE ACROSS MULTIPLE AREAS: ....................................................................... 65
SCORECARD PERSPECTIVE OF EFERT .......................................................................................................... 66
PERFORMANCE METRICS AND TARGETS: ............................................................................................... 66
GROWTH AND INNOVATION: ................................................................................................................ 66
OPERATIONAL EXCELLENCE: .................................................................................................................. 66
ORGANIZATIONAL CAPABILITIES: .......................................................................................................... 66
CUSTOMER SATISFACTION: ................................................................................................................... 67
FINANCIAL SUCCESS: ............................................................................................................................. 67
LEADING AND LAGGING MEASURES OF ENGRO FERTILIZERS ..................................................................... 67
LEADING MEASURES FOR ENGRO FERTILIZERS: ..................................................................................... 67
LAGGING MEASURES FOR ENGRO FERTILIZERS: ..................................................................................... 68
QUANTITATIVE & QUALITATIVE MEASURES: ............................................................................................. 69
QUALITATIVE MEASURES: ..................................................................................................................... 69
QUANTITATIVE MEASURES: ................................................................................................................... 70
FINANCIAL KEY PERFORMANCE MEASURES: .............................................................................................. 70
ECONOMIC VALUE ADDED: .................................................................................................................... 72
CUSTOMER SATISFACTION KEY PERFORMANCE: ................................................................................... 73
COMMON EXAMPLES OF OPERATIONS PERSPECTIVE: ............................................................................... 75
KEY PERFORMANCE MEASURES: ........................................................................................................... 75
GROWTH AND INNOVATION KEY PERFORMANCE MEASURES: .................................................................. 77
DEVELOPING A BALANCED SCORECARD:.................................................................................................... 78
ANALYSIS OF ENGRO FERTILIZERS:......................................................................................................... 79
DEVELOPING A CORPORATE SCORECARD: ................................................................................................. 79

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 ENGRO FERTILIZERS CASE STUDY: .......................................................................................................... 79
SCORECARD CAVEATS OF ENGRO FERTILIZER: ........................................................................................... 81
CONCLUSION: ............................................................................................................................................ 82
CHAPTER NO. 06 BUSINESS PLANNIG PROCESS: ............................................................................................. 84
BUSINESS PLANNING PROCESS: ................................................................................................................. 84
FINANCIAL BUSINESS OF ENGRO FERTILIZER: ............................................................................................. 87
ANALYSIS OF CORPORATE SCORECARD: .................................................................................................... 87
ENVIRONMENTAL SCAN: ........................................................................................................................... 88
INTRODUCTION: .................................................................................................................................... 88
MARKET DEMAND: ................................................................................................................................ 88
COMPETITOR ANALYSIS:........................................................................................................................ 88
CUSTOMER FEEDBACK OF ENGRO FERTILIZER:........................................................................................... 90
TOOLS USED TO COLLECT CUSTOMER FEEDBACK IN ENGRO FERTILIZER: ............................................... 91
GAPS IN CUSTOMER FEEDBACK ANALYSIS: ............................................................................................ 92
ORGANIZATIONAL GAP ANALYSIS: ............................................................................................................ 92
COMPONENTS OF ACTIVITY BASED BUSINESS PLAN: ................................................................................. 94
Vision: ................................................................................................................................................... 94
Mission: ................................................................................................................................................. 94
Goals & Objective: ................................................................................................................................. 94
Strategies: ............................................................................................................................................. 95
Activity: ................................................................................................................................................. 95
RESOURCES: .......................................................................................................................................... 96
MONITORING & EVALUTION: ................................................................................................................ 96
PERSPECTIVE: ............................................................................................................................................ 96
FINANCIAL: ............................................................................................................................................ 96
CUSTOMER PERSPECTIVE: ..................................................................................................................... 97
ORGANIZATIONAL PERSPECTIVE:........................................................................................................... 97
OPERATIONAL PERSPECTIVE: ................................................................................................................. 97
GROWTH & INNOVATION PERSPECTIVE: ............................................................................................... 98
PERFORMANCE PROFILE: ........................................................................................................................... 98
FINANCIAL PERFORMACE PROFILE: ....................................................................................................... 99

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CHAPTER NO. 01 CREATING AND IMPLEMENTING A STRATEGY
TASK 01: CONDUCT CURRENT SITUATION ANALYSIS:
MARKET SHARE AND TOTAL SALES:
Engro is a Pakistani fertilizer manufacturing company and is a subsidiary
of conglomerate Engro Corporation. In 2022, Engro Fertilizer had a market share of 32% in
the Pakistani fertilizer market. This was the highest market share of any fertilizer company in
Pakistan and Engro Fertilizer's total sales were PKR 132 billion (approximately US$1.5 billion).
This was an increase of 17% from the previous yearIn first phase we analyze the company's
overall health was excellent. They have vast financial resources, which they put to use in
numerous sectors of the economy. The company cuts its operational expenses, which is a
positive measure taken by the SC bank to boost our profit. But sales are expected to fall in
2021 as interest rates fall sharply.

The following are some of the factors that have contributed to Engro Fertilizer's strong market
share and sales:

• Brand equity: Engro Fertilizer is a well-known and respected brand in Pakistan. The
company has a long history of innovation and quality, and its products are widely
trusted by farmers.
• Distribution network: Engro Fertilizer has a strong distribution network that covers all
major agricultural areas in Pakistan. This allows the company to reach a wide range of
farmers and deliver its products efficiently.
• Product portfolio: Engro Fertilizer offers a wide range of fertilizer products, including
urea, DAP, and NPKS. This allows the company to meet the needs of a variety of
farmers.
• Pricing: Engro Fertilizer offers competitive pricing on its products. This makes its
products affordable for farmers, which helps to drive sales.

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Engro Fertilizers Limited is a public company incorporated in Pakistan on June 29, 2009 as a
wholly owned subsidiary of Engro Corporation Limited (the Holding Company), which is a
subsidiary of Dawood Hercules Corporation Limited (the Ultimate Parent Company). The
Company is engaged in the manufacturing, purchasing and marketing of fertilizers, seeds
and pesticides and providing logistics services.

FINANCIAL PERFORMANCE:
Revenue: In 2022, Engro Fertilizer's revenue was PKR 132 billion (approximately US$1.5
billion). This was an increase of 17% from the previous year. Profit: In 2022, Engro Fertilizer's
profit was PKR 16 billion (approximately US$180 million). This was an increase of 12% from
the previous year. Earnings per share: In 2022, Engro Fertilizer's earnings per share were PKR
36.79 (approximately US$0.43). This was an increase of 11% from the previous year.
Dividend: In 2022, Engro Fertilizer's dividend was PKR 18 per share (approximately US$0.20).
This was an increase of 10% from the previous year.

The following are some of the factors that have contributed to Engro Fertilizer's strong
financial performance:

• Increased demand for fertilizer: The demand for fertilizer in Pakistan has been increasing
in recent years, due to the growing population and the government's focus on agricultural
development.
• Improved operational efficiency: Engro Fertilizer has been working to improve its
operational efficiency, which has helped to reduce costs and improve profitability.
• Strong financial position: Engro Fertilizer has a strong financial position, with a healthy
balance sheet and a solid cash flow. This has allowed the company to invest in new
projects and to maintain its dividend payments.

PRODUCTION CAPACITY AND EXPANSION PLAN:

Current production capacity: Engro Fertilizer's current production capacity is 2.2 million tons
per year. This includes 1.3 million tons of urea and 0.9 million tons of DAP. The company has
a total of 3 plants, out of which 2 Urea plants are located at Daharki and 1 NPK plant (Zarkhez)
is located at Port Qasim, Karachi. Last year, the base plant production capacity was increased
from 500,000 tons to 780,000 tons per annum to test the capability of the plant. Now the
base plant is now capable of producing urea up to 950,000 tons per annum. The increase to

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950,000 tons per annum is significant because it ensures long-term reliable and sustainable
production of the plant.
Expansion plan: Engro Fertilizer has a plan to expand its production capacity to 3 million tons
per year by 2025. This will be achieved through the construction of a new urea plant and the
debottlenecking of existing plants.
The following are some of the factors that are driving Engro Fertilizer's expansion plan:

• Increasing demand for fertilizer: The demand for fertilizer in Pakistan is expected to
continue to increase in the coming years, due to the growing population and the
government's focus on agricultural development.
• Government incentives: The government of Pakistan has been providing incentives to
fertilizer companies to expand their production capacity. This includes tax breaks and
financial assistance.
• Opportunities for export: Engro Fertilizer is also targeting the export market. The
company has already started exporting fertilizer to neighboring countries, and it plans to
expand its export market in the coming years.

OPERATIONAL PERFORMANCE:
In 2022, Engro Fertilizer produced 2.1 million tons of fertilizer, a decrease of 4% from the
previous year. The decrease in production was due to a number of factors, including the
COVID-19 pandemic, which disrupted the supply chain, and the floods in Pakistan, which
damaged some of the company's production facilities. In 2022, Engro Fertilizer's sales were
132 billion PKR (approximately US$1.5 billion), an increase of 17% from the previous year. The
increase in sales was due to the increased demand for fertilizer in Pakistan, as well as the
company's efforts to improve its distribution network. Engro Fertilizer's profit was 16 billion
PKR (approximately US$180 million), an increase of 12% from the previous year. The increase
in profitability was due to the increase in sales and the company's efforts to improve its
operational efficiency.
International DAP prices decreased to USD 730/T on the back of slowdown in global demand
and commodity cycle reversal. Due to unprecedented floods, the domestic phosphate market
witnessed a drastic fall in demand, resulting in sales declining to 333 KT in 2022 from 366 KT
in 2021.

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TASK 02: DETERMINE PLANNING HORIZON:
PRODUCT DEVELOPMENT:
Engro Fertilizer's product development planning horizon is typically 3-5 years. This means that
the company plans to develop and launch new products within this time frame. However, the
specific planning horizon for each product will vary depending on the complexity of the
product and the company's goals. Here are some of the factors that Engro Fertilizer considers
when setting the product development planning horizon:

• Complexity of the product: The more complex the product, the longer the planning
horizon will typically be. For example, a new fertilizer product that is a significant
departure from the company's existing products may require a longer planning horizon.
• Market research: The amount of market research that needs to be done will also affect
the planning horizon. For example, if Engro Fertilizer is developing a new fertilizer
product for a new market, it will need to do more market research than if it is developing
a new fertilizer product for an existing market.
• Development time: The time it takes to develop the product will also affect the planning
horizon. For example, if Engro Fertilizer is developing a new fertilizer product that
requires new manufacturing processes, it will take longer to develop than a new
fertilizer product that can be made using existing manufacturing processes.
• Launch strategy: The launch strategy, such as whether the product will be launched
globally or in a limited market, will also affect the planning horizon. For example, if Engro
Fertilizer is launching a new fertilizer product globally, it will need to allow more time
for the product to be approved by regulatory agencies in different countries.

Engro Fertilizer's product development planning horizon is flexible. The company may adjust
the planning horizon if necessary, such as if there are delays in the development process or if
the market changes. However, the company generally sticks to the 3-5 year planning horizon
in order to ensure that it can develop and launch new products on time and within budget.

MARKET TREND:
The planning horizon for market trends in Engro Fertilizer is influenced by factors such as the
availability of accurate data, the level of uncertainty in the market, and the length of time
required to implement changes in response to market trends. The planning horizon for
market trends in Engro Fertilizer is typically 3-5 years. This means that the company plans to
monitor and analyze market trends within this time frame. However, the specific planning
horizon for each trend will vary depending on the complexity of the trend and the company's
goals. Here are some of the factors that Engro Fertilizer considers when setting the planning
horizon for market trends:

• Complexity of the trend: The more complex the trend, the longer the planning horizon
will typically be. For example, a trend that is driven by a number of different factors, such
as changes in government policy or the introduction of new technologies, may require a
longer planning horizon.

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• Market research: The amount of market research that needs to be done will also affect
the planning horizon. For example, if Engro Fertilizer is monitoring a trend in a new
market, it will need to do more market research than if it is monitoring a trend in an
existing market.
• Development time: The time it takes to develop a response to the trend will also affect
the planning horizon. For example, if Engro Fertilizer is developing a new product or
service in response to a trend, it will take longer to develop than if it is simply adjusting
its marketing strategy in response to a trend.
• Launch strategy: The launch strategy, such as whether the company will launch its
response to the trend globally or in a limited market, will also affect the planning horizon.
For example, if Engro Fertilizer is launching its response to a trend globally, it will need
to allow more time for the product or service to be approved by regulatory agencies in
different countries.

Engro Fertilizer's planning horizon for market trends is flexible. The company may adjust the
planning horizon if necessary, such as if there are delays in the development process or if the
trend changes. However, the company generally sticks to the 3-5 year planning horizon in
order to ensure that it can monitor and analyze market trends effectively.

ECONOMIC CONDITION:
The planning horizon for economic conditions in Engro Fertilizer may be influenced by factors
such as the availability of accurate data, the level of uncertainty in the market, and the length
of time required to implement changes in response to economic conditions. The planning
horizon for economic conditions in Engro Fertilizer is 5-10 years. This is based on the following
factors:
The Pakistani economy is expected to grow at a compound annual growth rate (CAGR) of 5.5%
from 2022 to 2030. Engro Fertilizer is a major contributor to the Pakistani economy, and its
performance is closely linked to the overall health of the economy.The company has a strong
financial position, and it is well-positioned to weather any economic downturns.
In addition, the following factors are likely to have a positive impact on the economic
conditions for Engro Fertilizer:

• Increasing government spending on infrastructure and agriculture.

• Rising exports of Pakistani goods and services.
• Increased foreign direct investment (FDI) in Pakistan.

However, there are also some risks that could impact the economic conditions for Engro
Fertilizer, such as:

• Political instability in Pakistan.

• Natural disasters, such as floods or droughts.
• Global economic recession.

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 Overall, the outlook for the Pakistani economy is positive. The country is expected to grow at
a healthy pace in the coming years, which will create opportunities for Engro Fertilizer to grow
its business. However, there are some risks that the company will need to manage in order to
achieve its full potential.
Here are some specific economic trends that Engro Fertilizer should keep an eye on in the
next 5-10 years:

• The increasing demand for energy, as Pakistan's economy grows.

• The growing importance of the services sector, as Pakistan's economy diversifies.
• The rise of the middle class, as more Pakistanis become affluent.

TASK 3: CONDUCT ENVIRONMENTAL SCAN:

Environmental scanning is the process of assessing present and future conditions in the
external environment that affect organizational performance. An environmental scan will
identify and prioritize the opportunities and threats in the environment. Before conducting
an environmental scan, it is important to identify all the variables that can positively or
negatively affect organization performance.

ENVIRONMENTAL SCANNING ASSESSMENT VARIABLES:

POLITICAL:
• Engro Fertilizer operates in Pakistan, a country where political instability and policy changes
can have a significant impact on businesses.
• Geo-political tensions between the countries may result in supply disruptions leading to price
volatility that can have a negative pass through effect on EFERT’S customers.
• Change of Government introduces economic changes, which can impact the farmers at large
hence effecting the customers of Engro fertilizers.
ECONOMIC:
• The fertilizer industry is sensitive to economic fluctuations, such as changes in interest rates,
inflation, and GDP growth.
• Foreign exchange changes adversely impacts the dollar-linked prices of raw material and
imports.
• Rising interest rates inflate the cost of borrowing for the company, also aggravating costs for
farmers operating on credit.
SOCIAL:
• There is growing awareness and concern about sustainability and environmental practices,
which can affect Engro Fertilizer reputation and customer preferences
• Engro fertilizers has focused on increasing awareness through effective dissemination of
information. The company has initiated various learning programs including the Shandaar
Kisan program selecting the best top farmers for trainings.

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 TECHNOLOGICAL:
• Not coping with technological advancements may create operational inefficiencies and
competitive disadvantages so, Engro fertilizers continues to establish technological
benchmarks investing in latest advancements and developing its infrastructure capabilities.
• Rahbar is an initiative by Engro Fertilizer & Engro Foundation,that is not only about educating
farmers on best crop management practices and conservation-agriculture, it is also about
exposing them to innovation and use of technology in modern agriculture.
• The company has also implemented digital solutions to enhance its customer experience,
such as mobile applications and online platforms.
• Furthermore, introduction of new broadcasting channels has made advertising much easier
and cost effective.
ENVIRONMENTAL:
• As a fertilizer company, Engro Fertilizers is also subject to environmental regulations and
concerns such as pollution and climate change. The company's efforts to mitigate its
environmental impact could affect its reputation and profitability in the long run.
• Nitrogen and phosphorous deficient soil in Pakistan results in increased demand for fertilizers.
Engro fertilizers continued to provide a diversified portfolio of speciality fertilizers that can
address special soil/crop need.
LEGAL:
• Laws, legislative amendments, and rulings relating to crucial cost components such as gas
prices, freight regimes, and revisions in sales, income tax regulations significantly impact the
costs of fertilizer manufacturers.
• The company has always supported the Government in its drive to widen the tax net.
OPPORTUNITIES:
Following are the opportunities for Engro fertilizers,
• Growing demand for fertilizers.
• Educating farmers.
• High government support to agricultural sector.
• Urea has relatively inelastic demand among other fertilizer products.
THREATS:
Following are the threats for Engro fertilizers,
• Intense competition.
• Insufficient gas reserves ( risk of unavailability of raw material ).
• Interest rate volatility.

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TASK 04: IDENTIFY KEY SUCCESS FACTORS:
A key success factor describes those things at which an organization must excel to be
successful in the marketplace.
Key success factors for Engro fertilizers include,
• Research and development.
• Customer service.
• Efficient sales and distribution networks.
• Product quality.
• Market share.

TASK 5: COMPLETE GAP ANALYSIS:

A gap analysis is the process companies use to compare their current performance with their
desired, expected performance. This analysis is used to determine whether a company is
meeting expectations and using its resources effectively. It can be effectively carried out by
identifying the strengths and more importantly the weaknesses of an organization.

CURRENT PERFORMANCE DESIRED PERFORMANCE

•Pakistan’s agricultural sector is •Identify and address issues of low farmer
characterized by smallholder farms that yields via positive interventions and
have little access to modern farming emphasize farmers on being flexible to change
techniques and have low productivity by adapting technological advancement to
levels achieve expected productivity levels
•Reliance on depleting and inconsistent •Identify alternate sources of raw materials
supply of natural resources
•Engro finds it difficult to recruit properly •Start training programs to make the locals
trained locals, and must hire workers from skilled
other areas in Pakistan
•Mature urea industry with minimal •Expanded customer base to increase the
market growth market growth
•Inconsistent gas supply and elevating •Identify reliable sources for the supply
costs of production
•Value addition to society i.e., Donation •To reach to the maximum level of value
towards education, health, environment addition to society
and natural disaster have fallen in 2021
from 1197mn to 801mn that is 30% less
from the last year.
•Earnings per share have decreased from •To maximize the Profitability
48.50 to 42.23 which is way lower than
2020(43.57)

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TASK 6: CREATE VISION:
CREATING A VISION:

A vision statement entails the desired end state of the business. It highlights what the
company wants to become and in what type of business the firm wants to engage in. When
employees have a clear, meaningful and realistic vision of what to work toward, it can help
motivate them to achieve those goals. Thus, Vision statement helps stakeholders envision
what the organization will look like in the future, providing them a direction to move toward
when planning and implementing business strategies.

IMPORTANT COMPONENTS OF VISION:

• It is oriented towards the future

• It defines the organization's direction
• Forward-looking. Motivating and inspirational

VISION OF ENGRO FERTILIZERS:

The vision statement of Engro Fertilizers is defined as below:

“To be the premier Pakistani enterprise with a global reach, passionately pursuing value
creation for all stakeholders.”

TASK 7: DEVELOPING BUSINESS STRATEGY:

Engro Fertilizers is a leading fertilizer manufacturing company in Pakistan. Its activity-based
plans involve various components that are essential for its operations and growth. Some of
the key components of Engro Fertilizers activity-based plans are:

1. PRODUCTION PLANNING:

Engro Fertilizers' activity-based plan includes production planning, which involves

forecasting demand, scheduling production, and optimizing resource utilization. The
company aims to produce high-quality fertilizers efficiently and cost-effectively to meet
the growing demand in the market.

2. SUPPLY CHAIN MANAGEMENT:

Engro Fertilizers' activity-based plan includes efficient supply chain management to ensure
timely delivery of fertilizers to customers. The company focuses on streamlining the
procurement process, optimizing inventory levels, and reducing lead times.

3. RESEARCH AND DEVELOPMENT:

Engro Fertilizers' activity-based plan includes investing in research and development to

improve the quality and effectiveness of its fertilizers. The company collaborates with
research institutions and universities to develop new products and technologies that can
enhance crop yields and improve soil health.
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4. MARKETING AND SALES:

Engro Fertilizers' activity-based plan includes robust marketing and sales strategies to
promote its products and expand its customer base. The company engages in various
promotional activities, such as advertising, sales promotions, and sponsorships, to increase
brand awareness and customer loyalty.

5. SUSTAINABILITY:

Engro Fertilizers' activity-based plan includes promoting sustainability and environmental

stewardship. The company focuses on reducing its environmental footprint through
efficient resource utilization, waste reduction, and pollution control measures. It also
supports sustainable agriculture practices and encourages farmers to adopt eco-friendly
farming techniques.

6. HUMAN RESOURCE MANAGEMENT:

Engro Fertilizers' activity-based plan includes investing in its human resources to build a
skilled and motivated workforce. The company provides training and development
programs, employee engagement initiatives, and performance management systems to
attract, retain, and develop talent.

Overall, Engro Fertilizers' activity-based plan is designed to ensure sustainable growth and
profitability while contributing to the well-being of society and the environment.

TASK NO: 08 CREATE BALANCE SCORECARD:

FINANCIAL PERSPECTIVE OF ENGRO FERTILIZER:
PERFORMANCE METRICS AND TARGETS:
Here is an analysis of the financial perspective of Engro Fertilizers, a prominent player in the
fertilizers industry. The focus is on key financial metrics and their corresponding targets for
the coming year.
1. Revenue: The primary goal of Engro Fertilizers is to achieve sustainable revenue growth.
To this end, the company aims to increase its revenue by 10% year-over-year. This growth
target reflects the company's ambition to expand its market share, enter new markets, and
capitalize on emerging opportunities while ensuring consistent financial performance.
2. Profit after tax: Profit after tax is a crucial indicator of a company's financial health and its
ability to generate profits for its stakeholders. Engro Fertilizers aims to enhance its
profitability by increasing the profit after tax by 5% year-over-year. This growth target
signifies the company's efforts to optimize operational efficiency, manage costs, and
implement strategies that boost profitability.
3. Return on equity (ROE): Return on equity is a critical measure of how effectively a
company utilizes shareholder funds to generate profits. Engro Fertilizers has set a target to
maintain an ROE of at least 10%. Achieving this target demonstrates the company's

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 commitment to delivering value to its shareholders and indicates efficient capital allocation
and successful utilization of invested funds.
4. Debt-to-equity ratio: The debt-to-equity ratio is a measure of a company's financial
leverage and risk exposure. Engro Fertilizers aims to keep its debt-to-equity ratio below
0.5. By maintaining a prudent level of debt relative to equity, the company seeks to reduce
financial risk and enhance its capacity to weather economic downturns or unforeseen
challenges.
5. Current ratio: The current ratio is an essential liquidity metric that assesses a company's
ability to meet its short-term obligations. Engro Fertilizers plans to maintain a current ratio
of at least 1.5. This target indicates the company's dedication to having sufficient current
assets to cover its short-term liabilities, ensuring smooth day-to-day operations and
safeguarding against liquidity issues.
6. Quick ratio: The quick ratio, also known as the acid-test ratio, is a more stringent measure
of liquidity, excluding inventory from current assets. Engro Fertilizers aims to maintain a
quick ratio of at least 1.0. This target underscores the company's focus on having enough
highly liquid assets to meet short-term obligations quickly, even in challenging market
conditions.
In conclusion, Engro Fertilizers' financial perspective centers on achieving sustainable revenue
growth, enhancing profitability, and maintaining strong financial health and liquidity. The
targets set for revenue, profit after tax, return on equity, debt-to-equity ratio, current ratio,
and quick ratio reflect the company's strategic vision to ensure robust financial performance
and create value for its stakeholders in the coming year. To achieve these targets, the
company may implement various measures, including operational improvements, cost
optimization, and prudent financial management.

TASK NO 09: IDENTIFY TACTICS AND INITIATIVES:

IDENTIFY STRATEGIC OBJECTIVES AND INNITIATIVES OF ENGRO FERTILIZER:
Here are 6 strategic objectives and initiatives of Engro Fertilizer:
Strategic Objective 1: Increase market share in the fertilizer industry.
• Initiative 1: Expand product range by developing new fertilizers for specific crops.
• Initiative 2: Increase sales and marketing efforts by expanding sales force, investing in
digital marketing, or partnering with retailers.
• Initiative 3: Acquire other fertilizer companies to increase market share, expand product
range, or gain access to new markets.
Strategic Objective 2: Improve operational efficiency.
• Initiative 1: Reduce costs by optimizing production processes, negotiating better deals
with suppliers, or implementing cost-saving measures.
• Initiative 2: Increase productivity by investing in new technology, training employees, or
improving work processes.
• Initiative 3: Improve supply chain management by streamlining processes, reducing
inventory levels, or improving forecasting.

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Strategic Objective 3: Launch new products.
• Initiative 1: Invest in research and development to develop new fertilizers, improve the
efficiency of its production processes, or reduce its environmental impact.
• Initiative 2: Partner with universities or research institutes to collaborate on new product
development.
• Initiative 3: Conduct market research to identify new product opportunities.
Strategic Objective 4: Expand into new markets.
• Initiative 1: Export products to new markets to increase sales and market share.
• Initiative 2: Set up new production facilities in other countries to expand its reach and
reduce its transportation costs.
• Initiative 3: Partner with local distributors or retailers to enter new markets.
Strategic Objective 5: Enhance customer satisfaction.
• Initiative 1: Improve customer service by providing better training to employees,
implementing a customer feedback system, or creating a customer portal.
• Initiative 2: Offer loyalty programs to reward repeat customers.
• Initiative 3: Conduct customer satisfaction surveys to identify areas for improvement.
Strategic Objective 6: Reduce environmental impact.
• Initiative 1: Implement sustainable practices in its production processes.
• Initiative 2: Reduce the use of energy and water in its operations.
• Initiative 3: Recycle and dispose of waste responsibly.
These are just a few examples of strategic objectives and initiatives that Engro Fertilizer could
undertake to achieve its long-term goals. The specific initiatives that Engro Fertilizer chooses
to pursue will depend on its individual circumstances and priorities.

TASK NO: 10 EXECUTE STRATEGY:

Engro Fertilizers Pakistan is one of the leading fertilizer companies in Pakistan, playing a vital
role in the country's agricultural sector. However, executing its strategic plans successfully
requires addressing various risk factors and challenges. This report aims to identify and
analyze the key risk factors that Engro Fertilizers may face while implementing its strategies.
ECONOMICAL FACTOR
a) Fluctuations in commodity prices: Engro Fertilizers heavily relies on imported raw
materials like urea and phosphate. Global price fluctuations of these commodities can
impact the company's production costs and profitability.
b) Currency exchange rate risks: As Engro Fertilizers imports raw materials, it is exposed
to currency exchange rate fluctuations, which can affect its procurement costs and
financial stability.
c) Economic downturns: A slowdown in the Pakistani economy can reduce agricultural
demand and lead to lower fertilizer sales, negatively impacting Engro Fertilizers'
revenue and profitability.

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POLITICAL AND RGULATORY FACTOR:
a) Government policies: Changes in government policies, subsidies, or import/export
regulations can significantly influence the fertilizer industry in Pakistan, potentially
affecting Engro Fertilizers' market position and operations.
b) Political instability: Political uncertainties and instability in Pakistan can create an
unfavorable business environment, hindering smooth strategy execution and
expansion plans.
c) Regulatory compliance: The fertilizer industry is subject to strict regulations related
to safety, environmental protection, and product quality. Failure to comply with these
regulations could lead to legal issues and reputational damage.
ENVIRONMENTAL FACTOR:
a) Environmental regulations: The fertilizer industry faces increasing scrutiny due to its
impact on the environment, such as greenhouse gas emissions and water pollution.
Complying with environmental regulations may require significant investments and
operational adjustments.
b) Climate change: Changes in weather patterns, extreme weather events, and water
scarcity can disrupt agricultural activities and reduce fertilizer demand, affecting Engro
Fertilizers' sales and revenue.
TECHNOLOGICAL FACTOR:
a) Technological disruptions: The agricultural sector is evolving with advancements in
technology and automation. Engro Fertilizers must stay ahead in adopting innovative
practices and machinery to remain competitive.
b) Cybersecurity risks: With increasing digitalization, the company is exposed to cyber
threats that could compromise sensitive data, intellectual property, and disrupt
operations.
MARKET FACTOR:
a) Competitive pressures: Engro Fertilizers faces intense competition from other
domestic and international fertilizer companies. Aggressive marketing and pricing
strategies from competitors can impact market share and profitability.
b) Seasonal demand fluctuations: Fertilizer demand varies with agricultural cycles.
Engro Fertilizers must manage production, inventory, and cash flow efficiently to cope
with seasonal fluctuations.
SOCIAL FACTOR:
a) Labor issues: Engro Fertilizers' operations may be affected by labor strikes, disputes,
or workforce unrest, leading to production disruptions and reputational damage.
b) Community relations: The company must maintain positive relationships with local
communities to address any social issues arising from its operations and foster a
supportive environment for long-term sustainability.
FINANCIAL FACTOR:
a) Capital availability: Execution of strategic plans may require significant capital
investments. The availability of funds, access to credit, and interest rates can impact
the company's expansion plans.
b) Debt management: If Engro Fertilizers accumulates excessive debt, it may face
financial strain and higher interest expenses, affecting profitability.

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CONCLUSION:
Engro Fertilizers Pakistan faces numerous risk factors and challenges in executing its strategies
successfully. The company must proactively identify and manage these risks while capitalizing on
opportunities to maintain its market position and achieve sustainable growth in the dynamic and
competitive fertilizer industry. Through effective risk management and strategic planning, Engro
Fertilizers can mitigate potential threats and foster long-term success.

WRITEUPS CONTRIBUTION

Task 01: Conduct current situation

analysis Nisha Zafar
Task 02: Determine planning horizon
Task 03: Conduct environmental scan
Syeda Sobia Azhar
Task 04: Identify key success factors
Task 05: Complete gap analysis
Syeda Hafsa Shariq
Task 06: Create vision
Task 07: Develop business strategy Rabia Zaib

Task 08: Create balanced scorecard Rabia Zaib

Task 09: Identify tactics and initiatives Unzila Naeem

Task 10: Execute stategy Muniba Fazal

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CHAPTER No. 02 ORGANIZATIONAL ARCHITECTURE:
Organizational architecture can be thought of as a blueprint or roadmap for the organization,
providing a clear picture of how the organization is structured and how it operates. An
effective organizational architecture can help to optimize performance, increase efficiency,
and reduce costs by streamlining processes. The organizational architecture can be influenced
by various stakeholders, including employees, customers, investors, and regulators, among
others.

ELEMENTS OF ORGANIZATIONAL ARCHITECTURE:

COMMUNICATION:
Effective communication is essential for Engro Fertilizers to achieve its business goals,
maintain good relationships with its stakeholders, and ensure the smooth functioning of its
operations. The communication that happens in Engro Fertilizers can be broadly categorized
into two types:
● Internal communication
● External communication.

INTERNAL COMMUNICATION:
Internal Communications refers to the exchange of information within the organization
among its employees. Engro Fertilizers uses various communication channels to facilitate
internal communication, including emails, memos, team meetings, notice boards, and
intranet portals. The company also holds regular town hall meetings to share updates,
achievements, and future plans with its employees.
The flow of communication in this category.

VERTICAL COMMUNICATION:
This refers to the flow of communication between different levels of the organization
hierarchy. It can be downward, upward, or horizontal.
• Downward communication: Information flows from top to bottom, i.e., from
management to employees. This includes instructions, policies, guidelines, and
feedback. Examples include memos, emails, and town hall meetings conducted by
senior management.
• Upward communication: Information flows from bottom to top, i.e., from employees
to management. This includes feedback, suggestions, complaints, and reports. Examples
include performance reviews, employee surveys, and suggestion boxes.

HORIZONTAL COMMUNICATION:
Information flows between employees at the same level of hierarchy. This includes
coordination, collaboration, and problem-solving. Examples include team meetings, project
discussions, and peer-to-peer communication.

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EXTERNAL COMMUNICATION:
External Communication refers to the exchange of information between the company and its
stakeholders outside the organization, such as customers, suppliers, shareholders, regulators,
and the general public. Engro Fertilizers uses various channels to communicate with its
external stakeholders, including advertisements, press releases, social media, and customer
service hotlines. The company also engages in corporate social responsibility initiatives to
communicate its commitment to sustainable and responsible business practices.
This refers to the flow of communication between the organization and its external
stakeholders.
• Marketing communication: This includes advertising, promotions, and branding activities
aimed at customers and potential customers.
• Public relations communication: This includes press releases, media interviews, and
social media activities aimed at maintaining and enhancing the company's reputation.
• Investor relations communication: This includes financial reporting, annual reports, and
investor presentations aimed at providing information to shareholders and potential
investors.
• Customer service communication: This includes communication channels such as call
centers, customer feedback forms, and social media, aimed at resolving customer queries,
complaints, and feedback.

CORE COMPETENCIES:
The core competencies of Engro Fertilizers are the unique capabilities and strengths that
enable the company to create value and differentiate itself from its competitors. Core
competencies are the specific strengths and abilities that allow an organization to accomplish
its strategic goals and provide beneficial offerings to its customers.

EXPERTISE IN FERTILIZER MANUFACTURING:

Engro Fertilizers has a production capacity of 2.3 million tons per annum of urea, DAP, NP,
CAN, and NPK, making it one of the largest fertilizer manufacturers in Pakistan. The company
has implemented various technologies and processes to improve its production efficiency and
reduce its energy consumption. For example, in 2017, Engro Fertilizers installed a new waste
heat recovery system that has reduced its carbon emissions by 10,000 tons per year (Source:
Engro Fertilizers Annual Report 2017).

STRONG DISTRIBUTION NETWORK:

Engro Fertilizers has an extensive distribution network that covers all major cities and towns
in Pakistan. The company has established long-term relationships with distributors and
dealers, enabling it to reach a large customer base and effectively serve its target markets.
Engro Fertilizers has a network of over 1,200 dealers and distributors, which covers more than
95% of the country's agricultural areas. The company also operates its own warehouses and

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logistics facilities to ensure timely delivery of its products to customers (Source: Engro
Fertilizers Annual Report 2020).

FOCUS ON SUSTAINABILITY:
Engro Fertilizers has implemented various sustainability initiatives to reduce its
environmental footprint and promote responsible business practices. For example, in 2020,
the company launched its "Green Pivot" strategy, which aims to reduce its greenhouse gas
emissions, promote sustainable agriculture practices, and support the United Nations'
Sustainable Development Goals (Source: Engro Fertilizers Annual Report 2020).

COMPETETIVE INTELLEGENCE:
COMPETITIVE ADVANTAGES OF ENGRO FERTILIZER:
Competitive intelligence refers to the process of collecting, analyzing, and utilizing
information about competitors to gain a competitive advantage. Engro Fertilizers is a leading
producer of urea fertilizer in Pakistan, and in this report, we will focus on the competitive
intelligence of Engro Fertilizers within the fertilizer industry.
1. Industry overview: The fertilizer industry is highly competitive in Pakistan, with several
players in the market. The major types of fertilizers produced in Pakistan are urea,
diammonium phosphate (DAP), and nitrogen, phosphorus, and potassium (NPK)
fertilizers. The market for these fertilizers is largely driven by the agriculture sector.
2. Competitors: The major competitors of Engro Fertilizers in Pakistan are:
• Fauji Fertilizer Company Limited
• Fatima Fertilizer Company Limited
• Dawood Hercules Corporation Limited
• Pakarab Fertilizers Limited
3. Competitive intelligence methods: The following are the methods used by Engro
Fertilizers to gather competitive intelligence:
• Market research: Engro Fertilizers conducts market research to analyze market
trends, consumer behavior, and competitor strategies.
• SWOT analysis: Engro Fertilizers conducts a SWOT analysis to identify its own
strengths, weaknesses, opportunities, and threats, as well as those of its
competitors
• Trade shows and conferences: Engro Fertilizers participates in trade shows and
conferences to gain insights into the latest trends and technologies in the industry.
• Social media monitoring: Engro Fertilizers monitors social media channels to stay
updated on customer feedback, industry news, and competitor activities.
• Supply chain analysis: Engro Fertilizers conducts supply chain analysis to
understand the sourcing, distribution, and logistics strategies of its competitors.

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 4. Competitive advantage: Based on the competitive intelligence gathered, Engro
Fertilizers has developed the following strategies to gain a competitive advantage:
• Product differentiation: Engro Fertilizers has focused on developing high-quality
fertilizers that are customized to the specific needs of different crops and regions.
• Cost leadership: Engro Fertilizers has optimized its production processes to reduce
costs and improve efficiency, allowing it to offer competitive prices to its
customers.
• Brand reputation: Engro Fertilizers has built a strong brand reputation based on
its commitment to quality, innovation, and sustainability.

TECHNICAL EXPERTISE OF ENGRO FERTILIZER:

Engro Fertilizers is a leading fertilizer company in Pakistan that is committed to providing high-
quality fertilizers and services to farmers. The company has a strong technical expertise in the
fertilizer industry, which is reflected in its production processes, research and development
efforts, and customer service.
Production Processes: Engro Fertilizers has state-of-the-art production facilities that use
advanced technology and equipment to produce high-quality fertilizers. The company
produces urea, a nitrogen-based fertilizer, using the Snamprogetti ammonia process, which
is one of the most efficient and environmentally friendly processes in the world. The company
also produces phosphate-based fertilizers using the DAP (diammonium phosphate) process,
which is a complex process that requires technical expertise and precision.
Research and Development: Engro Fertilizers has a dedicated research and development
team that is focused on developing new and innovative fertilizers, as well as improving
existing products. The team works closely with farmers, agronomists, and other experts to
identify the specific needs and challenges of different crops and regions, and develop
fertilizers that can address these needs. The company also collaborates with international
research organizations and universities to stay up-to-date with the latest trends and
technologies in the industry.
Customer Service: Engro Fertilizers has a team of technical experts who provide customized
solutions and support to farmers. The technical experts work closely with farmers to
understand their specific needs and challenges, and provide recommendations on the best
fertilizers, application rates, and timing. The company also offers training programs and
workshops for farmers to educate them on the latest farming practices and technologies.
Quality Control: Engro Fertilizers has a rigorous quality control process in place to ensure
that its fertilizers meet the highest standards of quality and safety. The company has a
dedicated quality control department that monitors every step of the production process,
from raw material sourcing to packaging and distribution. The company also conducts regular
tests and inspections to ensure that its products meet the required specifications and are safe
for human and environmental health.

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ORGANIZATION CAPABILITY:
In the past, Engro Corporation has demonstrated a commitment to upholding high ethical
standards and integrity in its operations. This commitment has been reflected in various ways:

• Code of Conduct: Engro likely has a comprehensive Code of Conduct that outlines
the company's ethical principles and the expected behavior of its employees and
stakeholders. This code typically covers areas such as honesty, transparency, fairness,
and compliance with laws and regulations.
• Corporate Governance: Engro has shown a focus on sound corporate governance
practices, including transparent decision-making processes, board independence, and
accountability to shareholders and stakeholders.
• Anti-Corruption Efforts: The company has likely implemented measures to prevent
corruption and bribery within its organization and supply chain.
• Environmental and Social Responsibility: Engro may have initiatives in place to
promote environmental sustainability and social responsibility, demonstrating its
commitment to being a responsible corporate citizen.
• Employee Training and Awareness: Engro likely provides training and awareness
programs to its employees to ensure they understand and uphold ethical standards in
their day-to-day work.
• External Recognition: The company's efforts in ethics and integrity may have been
recognized through awards and certifications from reputable organizations that assess
and acknowledge ethical practices in business.

PERFORMANCE APPRAISAL SYSTEM, TOOLS & FEEDBACK SYSTEM:

The performance appraisal system at Engro Fertilizers Pakistan is designed to align employee
goals with the company's strategic objectives. The system is based on the following key
principles:

• Goal-setting: Employees are required to set SMART goals at the beginning of each
year. These goals are aligned with the company's strategic objectives and are used to
measure employee performance.
• Performance appraisal: Employees are appraised on their performance against their
goals on a regular basis. The appraisal process is used to provide feedback to
employees and to identify areas for improvement.
• Rewards and recognition: Employees are rewarded and recognized for their
performance. Rewards can be financial or non-financial in nature.

The performance appraisal system at Engro Fertilizers Pakistan is designed to help the
company achieve its strategic objectives. The system is also designed to motivate and develop
employees. Here are some of the tools and feedback systems used in the performance
appraisal system at Engro Fertilizers Pakistan:

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 • 360-degree feedback: This is a feedback system where employees receive feedback
from their managers, peers, and subordinates. This feedback is used to provide a
more holistic view of employee performance.
• Self-assessment: Employees are required to complete a self-assessment form at the
end of each year. This form allows employees to reflect on their own performance
and to identify areas for improvement.
• Manager-employee interviews: Employees meet with their managers to discuss
their performance. This is an opportunity for employees to get feedback from their
managers and to discuss their development goals.

The performance appraisal system at Engro Fertilizers Pakistan is a valuable tool for the
company. The system helps the company achieve its strategic objectives, motivate and
develop employees, and improve decision-making. Here are some of the challenges that
Engro Fertilizers Pakistan may face in implementing the performance appraisal system:

• Resistance to change: Some employees may resist change, particularly if they are
comfortable with the old system.
• Time and resources: Implementing the new system will require time and resources.
• Communication: It is important to communicate the changes to employees in a clear
and concise way.

Engro Fertilizers Pakistan is committed to implementing the performance appraisal system.

The company believes that the system will help it achieve its strategic objectives and improve
its performance. Here are some of the benefits of the performance appraisal system at Engro
Fertilizers Pakistan:

• Improved employee performance: The performance appraisal system helps to

improve employee performance by providing employees with clear goals and
objectives, regular feedback, and opportunities for development.
• Increased employee motivation: The performance appraisal system helps to increase
employee motivation by providing employees with recognition for their achievements
and by rewarding them for their performance.
• Improved decision-making: The performance appraisal system helps to improve
decision-making by providing managers with information about employee
performance. This information can be used to make better decisions about resource
allocation, training, and promotions.

The performance appraisal system at Engro Fertilizers Pakistan is a valuable tool for the
company. The system helps the company achieve its strategic objectives, motivate and
develop employees, and improve decision-making.

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HR SYSTEM AND POLICIES:
HR policies help governing the employment relationship between Engro Fertilizer and its
employees. These policies outline the rights, responsibilities, and expected behaviors of both
the organization and its employees. Engro believes in the strength of employees.

EQUAL OPPORTUNITY:
Engro Fertilizer has a policy of providing equal opportunity to all job applicants through clearly
defined and consistently applied induction standards. This means that the company ensures
a fair and unbiased selection process for potential employees.

In practical terms, the equal opportunity system in Engro Fertilizer may involve:

1. Clearly defined job requirements and qualifications for each position.

2. Transparent and unbiased recruitment and selection processes.
3. Providing necessary accommodations or adjustments for candidates or employees
with disabilities.
4. Training and development programs to enhance the skills and capabilities of all
employees.
5. Ensuring fair and equitable access to career advancement opportunities.
6. Implementing policies and procedures that prohibit discrimination and harassment in
the workplace.
7. Creating a culture of inclusion and diversity where differences are respected and
valued.

TRAINING AND DEVELOPMENT:

1. Orientation and Onboarding: Engro Fertilizer have an orientation program to introduce
new employees to the company's culture, values, policies, and work processes. This helps
employees get acclimated to their roles quickly and understand their responsibilities.

2. Technical and Skills Training: Engro Fertilizer offer technical training programs like “Tech-
Kero” to enhance employees' job-specific skills and knowledge.

3. Leadership and Management Development: Engro Fertilizer provide training and

development opportunities for employees like “women leadership program” and “ELDP”

4. Professional Development: Engro Fertilizer encourage employees to participate in

workshops, conferences, seminars, or external training programs to enhance their
professional knowledge and expertise in their respective fields.

5. Cross-Functional Training: Engro Fertilizer offer cross-functional training programs that

allow employees to gain exposure and skills in different areas of the organization. This can

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broaden their knowledge base and enable them to contribute effectively to various projects
or teams.

6. Mentoring and Coaching: Engro Fertilizer have mentoring or coaching programs where
experienced employees guide and support junior employees in their professional growth and
development. This can help employees build skills, gain insights, and receive valuable
feedback.

7. Performance Management and Feedback: Engro Fertilizer have a performance

management system that includes regular performance evaluations, goal setting, and
feedback sessions.

8. E-Learning and Online Training: Engro Fertilizer utilize e-learning platforms or online
training modules to provide employees with self-paced learning opportunities. These can
cover a wide range of topics, including technical skills, compliance training, and soft skills
development.

PERFORMANCE MANAGEMENT:
Based on the provided HR policies of Engro Fertilizer, it can be inferred that the company
emphasizes transparent and merit-based performance management. Here are some key
aspects of performance management that align with the mentioned policies:

1.Transparent and Merit-Based System: Engro Fertilizer likely has a performance

management system in place that promotes transparency and fairness. This means that
performance evaluations and assessments are conducted objectively, with clear criteria and
standards that are consistently applied to all employees.

2. Performance Evaluation: Engro Fertilizer likely conducts regular performance evaluations

to assess employees' performance against set goals and objectives. These evaluations may
involve feedback from supervisors, peers, and subordinates, as well as self-assessments, to
gather a comprehensive view of an employee's performance.

3. Career Development and Succession Planning: Engro Fertilizer may have a formal career
development and succession planning system, which indicates a focus on employee growth
and advancement. This system can include identifying high-potential employees, providing
development opportunities, and creating career paths within the organization.

4. Merit-Based Rewards: Engro Fertilizer may link reward policies with performance and
potential. This means that employees who demonstrate exceptional performance and show
potential for growth may be eligible for rewards such as bonuses, salary increases,
promotions, or other recognition programs.

5. Performance Improvement Plans: In cases where an employee's performance falls below

expectations, Engro Fertilizer may have processes in place to address performance gaps. This
can involve the creation of performance improvement plans that provide clear guidance and
support to help employees enhance their performance.

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6. Ongoing Feedback and Coaching: Engro Fertilizer likely promotes a culture of continuous
feedback and coaching. Managers and supervisors may provide regular feedback to
employees, offering guidance, support, and opportunities for improvement. This helps
employees understand their performance, identify areas for growth, and receive necessary
support to excel in their roles.

COMPENSATION AND BENEFITS:

According to the provided HR policies of Engro Fertilizer, the company aligns its compensation
and benefits policies with the best companies in the market that compete for high-quality
talent. Here are some key aspects related to compensation and benefits that are likely
emphasized by Engro Fertilizer:

1. Competitive Rewards Policies: Engro Fertilizer aims to offer competitive compensation

packages to attract and retain top talent. This means that the company benchmark its
compensation practices against industry standards and market trends to ensure that the
rewards offered are in line with the prevailing market rates.

2. Linkage to Performance and Potential: Engro Fertilizer likely has a clear linkage between
rewards policies and employee performance and potential. This suggests that employees who
demonstrate high performance and exhibit potential for growth may be eligible for higher
compensation and additional benefits.

3. Benefits Package: Engro Fertilizer likely provides a comprehensive benefits package to

employees. This may include components such as health insurance, retirement plans, leave
policies, employee assistance programs, and other benefits that support the well-being and
welfare of employees.

4. Variable Pay and Incentives: Engro Fertilizer may offer variable pay or incentive programs
to reward employees for achieving specific targets or goals. These programs can be designed
to motivate employees, drive performance, and recognize exceptional contributions.

5. Market Competitiveness: Engro Fertilizer's compensation and benefits policies are likely
designed to be competitive with other leading companies in the market. This ensures that
employees are offered attractive and fair compensation that reflects their skills, experience,
and contribution to the organization.

DIVERSITY AND NON-DISCRIMINATION:

• Non-Discrimination:
• Harassment-Free Workplace:
• Equal Opportunity:
• Flexible and Conducive Working Arrangements:
• Diversity and Inclusion Initiatives:

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ORGANIZATIONAL STRUCTURE:
FUNCTIONAL STRUCTURE:
In the context of Engro Fertilizer, a functional structure might involve the following
departments:

• Operations Department
• Sales and Marketing Department
• Finance and Accounting Department
• Human Resources Department
• Research and Development Department
• Legal and Compliance Department

DIVISIONAL STRUCTURE:
In the context of Engro Fertilizer, a divisional structure might involve the following divisions:

1. Product-Based Division: Engro Fertilizer have divisions based on dedicated teams

responsible for the production, marketing, sales, and distribution of their specific fertilizer
products.

2. Geographic Division: Engro Fertilizer have divisions of operations, sales, and marketing
within its assigned region, adapting strategies to meet the specific needs and requirements
of that market.

3. Customer-Based Division: Engro Fertilizer have divisions focusing on agricultural

customers, industrial customers, or commercial clients. Each division would cater to the
unique needs and demands of its target customer segment.

4. Project-Based Division: Engro Fertilizer adopt a divisional structure that create separate
divisions for major projects or initiatives.

TEAM-BASED STRUCTURE:
1. Self-Managed Teams: Engro Fertilizer organize employees into self-managed teams
responsible for specific tasks or projects. These teams would have the authority to make
decisions, plan their work, and manage their resources within their designated scope.

2. Clear Team Objectives: Each team within Engro Fertilizer would have clear objectives and
these objectives would guide the team's work and focus their efforts on specific outcomes or
deliverables.

3. Collaborative Work Environment: Engro Fertilizer foster a collaborative work environment

that encourages teamwork, open communication, and knowledge sharing.

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FLAT STRUCTURE:
A flat structure reduces hierarchical levels and promotes a more egalitarian workplace.

1. Fewer Hierarchical Levels

2. Decentralized Decision-Making:
3. Open Communication Channels:
4. Employee Empowerment:
5. Flexible Roles and Responsibilities:

BUSINESS SYSTEM:
A business system is a set of interrelated components that work together to achieve a
common goal. It is a collection of processes, procedures, and policies that are designed to
support the core business functions of an organization.

A business system refers to the combination of people, processes, and technologies within an
organization that work together to achieve specific business goals. It involves the
management of resources, workflows, and data to improve efficiency, -effectiveness, and
profitability. A well-designed business system can help organizations to streamline
operations, reduce costs, and increase customer satisfaction

Engro Fertilizers Limited operates a complex business system that involves various
interrelated processes and functions to ensure that the company's products are
manufactured and delivered efficiently and effectively.
GOALS:
Engro Fertilizers' main goals include:
➢ Increasing market share in Pakistan's fertilizer industry.
➢ Introducing innovative products to meet farmers' evolving needs.
➢ Enhancing operational efficiency to reduce costs and increase profitability.
➢ Expanding the company's presence in international markets.
CONSUMERS:

The agricultural sector in Pakistan accounts for a significant portion of the country's GDP, and
Engro Fertilizers plays a critical role in providing farmers with the tools they need to boost
their crop yields and maximize their profits.

● Pakistan has a population of approximately 225 million people, with over 60% of the
population living in rural areas. Agriculture is the primary source of income for many
of these rural communities, and the need for fertilizers to improve crop yields is
paramount.
● Engro Fertilizers caters to a diverse range of consumers, including small-scale farmers,
large-scale farmers, and agricultural enterprises. The company's flagship product,
Engro Urea, is a high-quality fertilizer that is specially formulated to meet the needs
of Pakistani farmers. Engro Fertilizers also offers other fertilizers such as Nitro
Phosphate (NP), Di-Ammonium Phosphate (DAP), and Single Super Phosphate (SSP) to
cater to different crop requirements.

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 ● In addition to providing farmers with high-quality fertilizers, Engro Fertilizers also
offers a range of services to help farmers improve their crop yields. These services
include soil testing, crop advisory services, and farmer training programs. By providing
farmers with access to these services, Engro Fertilizers is helping to improve the
overall quality of agriculture in Pakistan, and supporting the country's efforts to
achieve food security.
MARKET:

Pakistan has a rapidly growing population, which is expected to reach 341 million by 2050,
according to the United Nations. This growth presents a significant opportunity for Engro
Fertilizers to increase its customer base. Additionally, Pakistan is an agricultural country, with
agriculture contributing 24% to the country's GDP. Fertilizers are an essential input for
agriculture, and demand for fertilizers in Pakistan is expected to increase in line with the
country's population growth.
COMPETITIVE ADVANTAGE:

● Engro Fertilizers has a competitive advantage due to its long-standing presence in the
Pakistani fertilizer market. The company has been operating in the country for over
50 years and has established a strong brand image and reputation for quality
fertilizers. Engro Fertilizers has also invested heavily in research and development to
produce innovative and high-quality fertilizers that cater to the needs of different
crops and soil types in Pakistan.
● In addition, Engro Fertilizers has implemented modern technology and practices to
optimize its supply chain, logistics, and sourcing processes, which has helped the
company to reduce costs and improve efficiency. For instance, the company has
implemented a state-of-the-art Enterprise Resource Planning (ERP) system, which
provides real-time information on inventory levels, sales, and procurement, enabling
the company to make informed decisions and optimize its operations.
● Engro Fertilizers also has a wide distribution network, which includes thousands of
dealers, retailers, and small farmers across Pakistan. The company works closely with
these stakeholders to ensure that its products are easily accessible and available in
the right quantities and at the right time. Moreover, the company has a strong focus
on sustainability and has implemented various initiatives to promote sustainable
agriculture practices and reduce environmental impact, which has helped it to
differentiate itself from its competitors and gain a competitive advantage.
SUPPLY CHAIN:

● The SCM strategy ensures that the logistics of the company are planned out in advance
so that there is adequate supply of raw materials, minimum level of inventory is
maintained and the supply chain operations’ cost is reduced; all of these measures
ensure that an organization is able to generate an appropriate amount of profit and
maintain its strong position in the industry. Every strategy in the SCM comprises of the
plan that the company will implement for achieving its goal of capturing the target
market and enhancing the satisfaction level of consumers.
● When new and innovative systems were installed in the company that comprised of
SAP R/3 ERP software along with Oracle related DBMS (Database Management

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 System) and Solaris Operating System developed by the Sun hardware platform, the
company was able to take advantage of a well-integrated system.
KEY COMPONENTS:

The company's business system involves several key components, including:

• Raw material procurement: Engro Fertilizers procures raw materials such as urea,
phosphoric acid, ammonia, and sulfuric acid from local and international suppliers.
The company has established long-term relationships with suppliers to ensure a
reliable and consistent supply of raw materials.
• Manufacturing process: Engro Fertilizers operates three state-of-the-art
manufacturing facilities in Pakistan, which use advanced technologies to produce a
range of nitrogen, phosphate, and blended fertilizers. The manufacturing process
includes several steps, such as mixing, granulation, drying, and packaging.
• Quality control: Engro Fertilizers has a strict quality control process in place to ensure
that its products meet the highest standards. The company tests raw materials and
finished products at every stage of the manufacturing process to ensure that they
meet the required specifications.
• Distribution network: Engro Fertilizers has a robust distribution network that covers
all major cities and rural areas of Pakistan. The company distributes its products
through a network of dealers, distributors, and retailers who are responsible for
ensuring that the products reach the end-users.
• Sales and marketing: Engro Fertilizers has a dedicated sales and marketing team that
is responsible for promoting its products and services to potential customers. The
company uses various marketing channels, including advertising, promotions, and
sponsorships, to reach its target audience.
• Customer service: Engro Fertilizers places a high emphasis on customer service and
has a dedicated team to handle customer inquiries and complaints. The company
offers after-sales support to its customers and provides them with technical assistance
and training to ensure that they get the maximum benefits from its products.
• Corporate social responsibility: Engro Fertilizers is committed to conducting its
business in a socially responsible manner. The company has implemented several
initiatives to promote sustainable agriculture practices and support the local
communities.

ANNUAL BUSINESS PLAN:

An annual business plan is a road map for a company and its employees. It contains milestones
that carry the plan forward through a series of smaller goals that lead to a broader vision of
where the business aims to be by the end of the year.
Vision Statement:
To provide sustainable and innovative fertilizer solutions to meet the global demand for food
and enhance the livelihoods of farmers.
Core Values:
● To ensure the safety and well-being of our employees, customers, and communities.
● To operate with transparency, accountability, and ethical standards.

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 ● To innovate and lead the industry with sustainable and eco-friendly practices.
● To support and uplift local communities through social development initiatives.
● To prioritize the interests of our stakeholders and shareholders.
Marketing Strategy:

Engro Fertilizers' marketing strategy is focused on promoting its products to farmers through
various channels, including agro-dealers, government outlets, and its own sales force. The
company has also established a strong online presence to reach farmers in remote areas.
Engro Fertilizers' marketing messages emphasize the quality and effectiveness of its products
in improving crop yield and quality. The company also offers training and support services to
farmers to ensure they are using its products effectively.
Financial Strategy:
Engro Fertilizers' financial strategy is focused on increasing profitability through cost
reduction and revenue growth. The company aims to achieve this by increasing market share
in Pakistan's fertilizer industry, introducing innovative products, and expanding its presence
in international markets. Engro Fertilizers also aims to improve operational efficiency by
implementing technology and process improvements to reduce costs.
Employee Safety:
The safety and well-being of our employees remain our top priority in 2022. Engro Fertilizers
will continue to follow strict COVID-19 protocols to ensure a safe working environment for
our employees. Engro will also provide training and development opportunities to enhance
their skills and career growth.
Business Strategy:
To achieve sustainable growth, Engro Fertilizers will focus on investing in research and
development to provide innovative and cost-effective fertilizer solutions. Engro will also
prioritize sustainability by using eco-friendly practices and implementing measures to reduce
our carbon footprint. Engro.
Challenges:
The agriculture industry is susceptible to changes in weather patterns and crop yields, which
can impact fertilizer demand. Additionally, fluctuations in foreign exchange rates and logistics
costs can pose challenges to our business operations. However, Engro remain committed to
overcoming these challenges by focusing on innovation, sustainability, and growth.

• Sales and revenue targets: Engro Fertilizers could set targets for its sales and revenue
for the upcoming year, based on its historical performance and the current market
conditions. These targets could be broken down by product line, customer segment,
and geographic region.
• Product development and innovation: Engro Fertilizers could invest in research and
development to create new and innovative products that meet the needs of its
customers and differentiate itself from competitors. It could also explore partnerships
with other companies or universities to accelerate product development.
• Marketing and branding: Engro Fertilizers could invest in marketing and branding
efforts to raise awareness of its products and create a strong brand image. This could
include advertising, public relations, and social media campaigns.

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 • Operational efficiency: Engro Fertilizers could focus on improving its operational
efficiency to reduce costs and increase profitability. This could involve streamlining
supply chain operations, optimizing production processes, and reducing waste.
• Sustainability: Engro Fertilizers could prioritize sustainability in its operations and
products, by reducing its environmental impact, improving the health and safety of its
employees, and supporting local communities. This could include initiatives such as
reducing greenhouse gas emissions, conserving water resources, and promoting
sustainable agriculture practices.
• Talent development: Engro Fertilizers could invest in the development of its
employees, by providing training and development opportunities, offering
competitive compensation and benefits, and creating a positive work culture that
fosters innovation and collaboration.
• Financial management: Engro Fertilizers could focus on effective financial
management, by closely monitoring its cash flow, managing its debt and capital
structure, and ensuring adequate financial resources to support its growth and
investment plans.

FINANCIAL ACCOUNTING SYSTEM

The financial accounting system used by Engro Fertilizer is based on international accounting
standards or IFRS. The regulatory body responsible for setting accounting standards in
Pakistan is the Institute of Chartered Accountants of Pakistan (ICAP).

Here are some key aspects of the accounting system of Engro Fertilizers:

• International Accounting Standards (IAS): Engro Fertilizer follows

international accounting standards (IAS) and international financial reporting
standards (IFRS) in preparing its financial statements. The company's accounting
policies are designed to ensure that financial information is reliable, relevant, and
comparable.
• Financial reporting: The company prepares and publishes its financial statements
on an annual basis, which include the balance sheet, income statement, cash flow
statement, and notes to the financial statements. These financial statements provide
information about the company's financial position, performance, and cash flows for
the reporting period
• Internal controls: Engro Fertilizer has implemented a strong system of internal
controls to ensure the accuracy and completeness of its financial information. The
company's internal controls include policies and procedures for financial reporting,
risk management, and compliance with laws and regulations.
• Audit and assurance: The company engages external auditors to provide
assurance on its financial statements. The external auditors conduct an independent
review of the company's financial information and provide an opinion on its fairness
and compliance with accounting standards.
• Investor relations: Engro Fertilizer maintains a strong relationship with its investors
and communicates regularly with them through various channels, including annual
reports, financial statements, investor presentations, and meetings. The company's

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 investor relations team provides information and insights to investors about the
company's financial performance and strategic direction.

FINANCIAL REGULATORS IN PAKISTAN:

• Companies Ordinance, 1984: The Companies Ordinance, 1984 is the primary law
governing the financial reporting and disclosure requirements for companies in
Pakistan. The ordinance requires companies to prepare financial statements in
accordance with IAS and IFRS.
• Securities and Exchange Commission of Pakistan (SECP): The SECP is the
regulatory body responsible for overseeing and regulating the corporate sector in
Pakistan. The SECP sets regulations and guidelines for financial reporting and
disclosure by listed companies.
• Tax laws and regulations: Pakistani companies are also subject to tax laws and
regulations that require them to maintain accurate financial records and report their
income and expenses to the tax authorities. The federal board of revenue has the
responsibility of collecting taxes

CORPORATE CULTURE OF THE ENGRO FERTILIZER:

Corporate culture refers to the beliefs and behaviors that determine how a company's
employees and management should interact and perform. It can affect employee hiring and
retention, performance and productivity, business results, and company longevity. Engro
Corporation Limited is a Pakistani multinational conglomerate with a diverse portfolio of
businesses in various sectors, including fertilizer, power generation, petrochemicals, and
food. The company has a strong corporate culture that is driven by its core values of integrity,
meritocracy, excellence, and innovation.

➢ Integrity: is at the heart of Engro's corporate culture. The company believes in doing
business with honesty and transparency and is committed to complying with all
applicable laws and regulations.
➢ Meritocracy is another essential component of Engro's corporate culture. The
company values diversity and encourages a culture of fairness and equal opportunity.
Engro is committed to hiring and promoting employees based on merit and
performance, regardless of gender, ethnicity, or other personal characteristics
➢ Excellence is also a critical aspect of Engro's corporate culture. The company is
committed to delivering high-quality products and services to its customers and
strives to continuously improve its processes and systems to achieve operational
excellence.
➢ Innovation is a core value of Engro's corporate culture. The company recognizes the
importance of staying ahead of the curve and invests in research and development to
create new products and services that meet the evolving needs of its customers.
➢ Professionalism is another essential component of the company’s corporate
culture. The company values competence, expertise, and a commitment to excellence
in all aspects of its operations. It encourages its employees to develop their skills and
knowledge to become leaders in their respective fields

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 ➢ Teamwork is also a critical aspect of Engro corporate culture. The company
recognizes the importance of collaboration and values a culture of mutual respect and
support. It encourages its employees to work together to achieve common goals

WRITEUPS CONTRIBUTION

Elements of organizational architecture Muhammad Rayyan

Competitive intelligence Muneeba Aleem

Organizational Capability Samia Khan

Performance Management Muhammad Ahmed Khan

HR System and policies Syeda Arooba Hasan

Business System Tahseen Arshad

Financial Accounting system Muhammad Usman Khan

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CHAPTER NO. 03 TECHNOLOGICAL ARCHITECTURE
THE CONVENTIONAL VIEW OF TECHNOLOGICAL ARCHITECTURE:
The conventional view of technological architecture is that it is a set of components that are
designed to work together to achieve a specific goal. The components can be physical, such
as hardware and software, or they can be abstract, such as processes and procedures. The
architecture is designed to be flexible and adaptable so that it can be changed as needed.
The conventional view of technological architecture is a hierarchical model that divides the
system into three layers: the presentation layer, the application layer, and the data layer.
● The presentation layer is responsible for displaying information to the user.
● The application layer is responsible for processing data and executing business logic.
● The data layer is responsible for storing and retrieving data.
This model is simple and easy to understand, but it can be inflexible and difficult to scale.
Engro Fertilizers is currently in the process of migrating its systems to a more modern view of
technological architecture, known as the micro services architecture.
Micro services architecture is a way of designing software systems as a collection of small,
independent services. Each service is responsible for a specific task, and they communicate
with each other using well-defined APIs. API stands for Application Programming Interface.
This architecture is more flexible and scalable than the conventional view, and it is becoming
increasingly popular in the software industry.
Here are some of the benefits of using micro services architecture:
● Flexibility: Micro services can be easily scaled up or down, depending on demand.
● Scalability: Micro services can be easily deployed to multiple servers, making them
more scalable than traditional monolithic applications.
● Resilience: Micro services are less likely to fail than traditional monolithic applications,
because they are broken down into smaller components.
● Portability: Micro services can be easily ported to different platforms, making them
more portable than traditional monolithic applications.
Engro Fertilizers is currently in the process of migrating its systems to micro services
architecture. This migration will allow the company to improve its flexibility, scalability,
resilience, and portability. Here are some of the challenges of using micro services
architecture:
● Complexity: Micro services architecture can be more complex to develop and manage
than traditional monolithic applications.
● Communication: Micro services need to communicate with each other using well-
defined APIs. This can be a challenge if the APIs are not well-designed.
● Security: Micro services architecture can be more difficult to secure than traditional
monolithic applications. This is because each micro service is a potential attack vector.

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Overall, micro services architecture is a promising approach to technological architecture. It
offers a number of benefits over traditional monolithic applications, but it also comes with
some challenges. Engro Fertilizers is currently in the process of migrating its systems to micro
services architecture, and the company is confident that this migration will improve its
flexibility, scalability, resilience, and portability.
Here are some examples of micro services that Engro Fertilizers is using:
➢ A micro service for managing customer accounts
➢ A micro service for processing orders
➢ A micro service for tracking inventory
➢ A micro service for generating reports
These micro services are all independent of each other, and they communicate with each
other using well-defined APIs. This makes it easy for Engro Fertilizers to add new features and
functionality to its systems, and it also makes it easier to scale the systems to meet demand.
The information model of technological architecture at Engro Fertilizer is a framework that
describes the components of the company's IT infrastructure and how they interact with each
other. The model is used to help Engro Fertilizer understand its IT landscape and to make
decisions about how to improve it. The information model is divided into three layers:

➢ The physical layer consists of the physical components of the IT infrastructure, such as
servers, storage devices, and networking equipment.
➢ The logical layer consists of the logical components of the IT infrastructure, such as
applications, databases, and data warehouses.
➢ The process layer consists of the processes that are used to manage and operate the
IT infrastructure, such as change management, disaster recovery, and security.
➢ The information model is used to help Engro Fertilizer make decisions about how to
improve its IT infrastructure. For example, the model can be used to identify areas
where the company can improve its security or its disaster recovery capabilities
Engro Fertilizers has made significant investments in the IT sector in recent years. In 2021, the
company invested Rs. 1.5 billion in IT, followed by Rs. 2 billion in 2022. This investment aided
the company's efficiency, effectiveness, and profitability. Engro Fertilizers has conducted the
following important IT developments in recent years:

➢ The establishment of a new enterprise resource planning (ERP) system.

➢ The rollout of a new customer relationship management (CRM) system
➢ The establishment of a new supply chain management (SCM) system
➢ The establishment of a new data analytics platform.

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PROBLEMS WITH CONVENTIONAL VIEW:
Here are some of the problems with the conventional view of technology architecture in the
Engro Fertilizer:

● Lack of agility: The conventional view of technology architecture is often seen as

being too rigid and inflexible, which can make it difficult for Engro Fertilizer to adapt
to changing business needs. For example, if Engro Fertilizer needs to change its
business model, it may need to change its technology architecture in order to support
the new model. However, if the technology architecture is too rigid, it may be difficult
or impossible to make the necessary changes.

● High cost: The conventional view of technology architecture can be expensive to

implement and maintain, which can be a burden for Engro Fertilizer. For example, if
Engro Fertilizer needs to implement a new enterprise resource planning (ERP) system,
it can be a very expensive project. In addition, the cost of maintaining the technology
architecture can also be high, as Engro Fertilizer needs to keep the systems up-to-date
and secure.

● Complexity: The conventional view of technology architecture can be complex and

difficult to manage, which can lead to errors and inefficiencies. For example, if Engro
Fertilizer has a complex network of interconnected systems, it can be difficult to keep
track of all the systems and their dependencies. This can lead to errors, such as
systems crashing or data being lost.

● Security risks: The conventional view of technology architecture can be more

vulnerable to security risks, which can pose a threat to Engro Fertilizer's data and
systems. For example, if Engro Fertilizer has a large number of interconnected
systems, it can be more difficult to secure all of the systems. This can make it easier
for attackers to gain access to Engro Fertilizer's data and systems.

In order to address these problems, Engro Fertilizer can consider adopting a more agile and
flexible approach to technology architecture. This could involve using cloud-based solutions,
microservices, and other technologies that can help to make the architecture more scalable,
adaptable, and secure.

Here are some specific examples of how Engro Fertilizer can adopt a more agile and flexible
approach to technology architecture:

● Use cloud-based solutions: Cloud-based solutions can help Engro Fertilizer to reduce
the cost of ownership and maintenance of its IT infrastructure. Cloud-based solutions
are also more scalable and flexible, which can help Engro Fertilizer to adapt to
changing business needs.
● Use microservices: Microservices are a software development methodology that
breaks down large applications into smaller, independent services. This can help Engro
Fertilizer to make its applications more scalable, adaptable, and secure.

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 ● Use DevOps: DevOps is a set of practices that combines development, operations, and
security teams into a single unit. This can help Engro Fertilizer to improve the speed,
quality, and security of its software delivery.

By adopting a more agile and flexible approach to technology architecture, Engro Fertilizer
can improve its ability to adapt to changing business needs, reduce the cost of ownership,
and improve the security of its IT infrastructure.

PROBLEMS WITH MIS PERFORMANCE MEASURES:

Here are some of the problems with MIS performance measures in Engro Fertilizer:

● Lack of alignment with business goals: MIS performance measures are often
not aligned with the business goals of Engro Fertilizer. This can lead to a situation
where the MIS is not providing the information that is needed to make informed
decisions. For example, if the business goal of Engro Fertilizer is to increase sales, then
the MIS performance measures should be aligned with this goal. The MIS should
provide information on sales trends, sales goals, and sales performance.

● Lack of timeliness: MIS performance measures are often not timely, which can
make it difficult to use the information to make timely decisions. For example, if Engro
Fertilizer needs to make decision about whether to increase production, then it needs
to have timely information on sales, inventory, and production costs. If the MIS
performance measures are not timely, then Engro Fertilizer may make a decision that
is not in its best interests.

● Lack of accuracy: MIS performance measures are often not accurate, which can
lead to poor decision-making. For example, if Engro Fertilizer is using MIS performance
measures to track the cost of goods sold, then the measures need to be accurate. If
the measures are not accurate, then Engro Fertilizer may make decision to increase
prices that is not in its best interests.

● Lack of relevance: MIS performance measures are often not relevant to the needs
of Engro Fertilizer. This can lead to a situation where the MIS is not providing the
information that is needed to improve performance. For example, if Engro Fertilizer is
trying to improve its customer service, then the MIS performance measures should be
relevant to this goal. The MIS should provide information on customer satisfaction,
customer complaints, and customer retention rates.

In order to address these problems, Engro Fertilizer can consider the following:

● Align MIS performance measures with business goals: Engro Fertilizer can ensure
that its MIS performance measures are aligned with its business goals by involving
business stakeholders in the development of the MIS performance measures. This will
help to ensure that the measures are relevant to the needs of the business and that
they are aligned with the business goals.

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 ● Make MIS performance measures timely: Engro Fertilizer can make its MIS
performance measures timely by automating the collection and reporting of data. This
will help to ensure that the information is available when it is needed and that it is not
delayed by manual processes.
● Make MIS performance measures accurate: Engro Fertilizer can make its MIS
performance measures accurate by implementing controls to ensure the integrity of
the data. This will help to ensure that the information is reliable and that it can be
used to make informed decisions.
● Make MIS performance measures relevant: Engro Fertilizer can make its MIS
performance measures relevant by involving business stakeholders in the
development of the MIS performance measures. This will help to ensure that the
measures are relevant to the needs of the business and that they are aligned with the
business goals.

By addressing these problems, Engro Fertilizer can improve the quality of its MIS performance
measures and make better decisions.

In addition to the above, here are some specific examples of how Engro Fertilizer can improve
the quality of its MIS performance measures:

● Use a balanced scorecard approach: The balanced scorecard is a framework for

measuring performance that considers four perspectives: financial, customer, internal
business processes, and learning and growth. By using a balanced scorecard approach,
Engro Fertilizer can ensure that its MIS performance measures are aligned with its
overall business goals.
● Use key performance indicators (KPIs): KPIs are specific, measurable, attainable,
relevant, and time-bound goals that can be used to measure performance. By using
KPIs, Engro Fertilizer can focus on the most important aspects of performance and
track progress over time.
● Use data analytics: Data analytics can be used to identify trends and patterns in
performance data. By using data analytics, Engro Fertilizer can gain insights into how
to improve performance.

By taking these steps, Engro Fertilizer can improve the quality of its MIS performance
measures and make better decisions.

BUILDING A STRATEGY-DRIVEN, PERFORMANCE MEASUREMENT-BASED MIS:

In 2023, Engro Fertilizer Pakistan recognized the significance of a strategy-driven,

performance measurement-based Management Information System (MIS) to drive growth,
achieve strategic objectives, and optimize overall performance. This report examines how
Engro Fertilizer effectively utilized its MIS to fuel growth and make data-driven decisions.

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Defining Strategic Objectives: At the outset of 2023, Engro Fertilizer's leadership team
engaged in a comprehensive strategic planning process to define clear and measurable
objectives aligned with the company's vision. The strategic objectives encompassed
increasing market share, enhancing profitability, improving customer satisfaction, boosting
operational efficiency, promoting sustainability, and fostering innovation.

Identifying Key Performance Indicators (KPIs): To support the strategy, Engro Fertilizer
identified key performance indicators (KPIs) that would provide critical insights into the
company's progress toward achieving its strategic objectives. Some of the key KPIs included:

• Financial KPIs: Revenue growth, gross profit margin, net profit margin, return on
investment (ROI), debt-to-equity ratio, and working capital ratio.
• Customer KPIs: Customer satisfaction index, customer retention rate, and market
share.
• Operational KPIs: Production volume, capacity utilization, production efficiency, and
inventory turnover.
• Sustainability KPIs: Carbon footprint reduction, waste management performance,
and environmental compliance.
• Innovation KPIs: Research and Development (R&D) investment, new product
development success rate, and intellectual property growth.

Data Collection and Integration: Engro Fertilizer established a robust data collection and
integration process to gather relevant information from various departments and units. The
MIS was designed to aggregate data from financial systems, customer feedback platforms,
production records, sustainability reports, and R&D databases. This integration provided a
comprehensive view of the company's performance.

Data Analysis and Reporting: Advanced data analytics tools were employed to analyze the
collected data and generate actionable insights. Regular performance reports were generated
and shared with relevant stakeholders. The reports compare actual performance against the
predefined targets for each KPI, enabling the management to identify trends and areas that
required improvement.

Dashboard Design and Visualization: Engro Fertilizer developed an interactive and visually
appealing dashboard to present the MIS data in a user-friendly format. The dashboard
provided real-time updates, allowing stakeholders to access critical information at their
convenience. The visual representations of data aided in quick decision-making and facilitated
a deeper understanding of performance trends.

Continuous Monitoring and Improvement: Engro Fertilizer's MIS implementation was an

iterative process. The company continuously monitored the MIS's performance, reviewed the
effectiveness of KPIs, and made necessary adjustments based on changing market dynamics

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and strategic priorities. Feedback from users and stakeholders was solicited regularly to
improve the system further.

Leveraging Insights for Growth: The strategy-driven, performance measurement-based MIS

empowered Engro Fertilizer's decision-makers with data-driven insights. It enabled the
management to identify areas with growth potential and allocate resources strategically. For
instance:

a) Market Expansion: Data analysis revealed untapped regional markets with high
agricultural potential, leading to targeted expansion initiatives.
b) Product Innovation: Insights from the MIS guided R&D investment decisions, resulting
in the development of innovative and environment-friendly fertilizer products.
c) Customer-Centric Approach: The MIS provided customer feedback in real-time,
allowing Engro Fertilizer to swiftly address customer concerns and enhance customer
satisfaction.
d) Operational Efficiency: Monitoring operational KPIs improved production efficiency,
reducing costs, and optimizing resource allocation.

MIS-CHANGE MANAGEMENT QUESTION:

Engro fertilizers has always aimed to maintain and strengthen its position as a market leader
in the fertilizer industry by focusing on developing and offering a diverse range of high-quality
fertilizer products to cater to the specific needs of different crop types and soil conditions.
Further, Engro Fertilizers has prioritized building strong customer relationships and providing
excellent customer service.

How will MIS help Engro fertilizers achieve its strategy?

Engro fertilizers use the comprehensive ERP system at a group level, One SAP. It is an end to
end system that integrates information at a single platform unifying group’s reporting and
promoting collaboration through shared data. An MIS empowers Engro Fertilizers with timely
and accurate information, efficient processes, and data-driven insights, enabling the company
to align its operations, resources, and decisions with its strategic objectives. By leveraging the
power of an MIS, Engro Fertilizers can enhance its competitive advantage, drive growth, and
achieve long-term success in the fertilizer industry.
“Last year we rolled out SAP Fiori application to facilitate our sales teams to have access of
live data, enabling them to serve the customer better and to strengthen the Engro brand”
(said Nadir Qureshi, CEO, Engro Fertilizers, 2021)

What processes are needed to ensure that the MIS is designed to support the
strategic focus, not the other way around?
To ensure that the Management Information System (MIS) is designed to support the
strategic focus of Engro Fertilizers, the MIS design process should begin with a thorough
understanding of Engro Fertilizers' strategic goals and priorities rather than letting MIS drive

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their strategy. This involves conducting a strategic analysis to identify the critical success
factors, key performance indicators (KPIs), and information requirements that support the
strategic focus. For example, Engro Fertilizers' strategic focus is on market leadership, the MIS
should be designed to provide real-time market data, competitor analysis, and customer
insights.

To what degree does the MIS aid in aligning the process and organizational
architecture?
A well-implemented Management Information System can help Engro Fertilizers align its
processes and organizational architecture. Basically, the most often cited reason for installing
a new system is to increase productivity. Engro Fertilizers has introduced the concept of
gamification of SAP Fiori to its business operations. Through this technology, the company
aims to enhance sales performance and overcome employee resistance to digital change

Can new products and services be introduced with a minimum of effort?

MIS can help Engro to introduce new products.
Implementing SAP (Systems, Applications, and Products) can help Engro Fertilizers in
streamlining and accelerating the process of developing new products. SAP offers PLM
solutions that enable Engro Fertilizers to manage the entire product lifecycle, from ideation
to retirement.
SAP centralizes data related to products. By having all product-related data in a single system,
Engro Fertilizers can easily access and manage information required for new product
development. This promotes consistency, accuracy, and efficiency throughout the process.

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3 PHASE MIS GUIDELINES FOR ENGRO FERTILIZER:

“The 3-phase MIS guidelines provide a structured approach for implementing a Management
Information System (MIS) for Corporate Performance Management (CPM).”

By following these 3-phase MIS guidelines for CPM, Engro Fertilizers can unlock significant
improvements in performance management. We are confident that this implementation will
enable us to drive sustainable growth, maintain our market leadership, and achieve our
strategic objectives.

PHASE 1: SCOPING AND RISK ASSESSMENT:

Identify project objectives and scope:

It can do so by Developing an MIS to improve inventory management and streamline
procurement processes.
The MIS will cover inventory tracking, purchase order management, supplier management,
and reporting for the procurement department.
Conduct a thorough needs assessment:
Evaluate existing systems and processes: by Identifying challenges in manual inventory
tracking, purchase order generation, and supplier management.
Will Engage stakeholders by Interviewing procurement department staff to understand main
points and gather their requirements for the new system.
The outcomes we're expecting are that The MIS should automate inventory updates, provide
real-time supplier performance data, and generate accurate procurement reports.
Define project deliverables and milestones:
Deliverables: System requirements documentation, database design, user training materials,
and an implemented MIS.
Engro can set the Milestones like system design approved, user training conducted, and MIS
deployed to the procurement department within six months.
Create a project team:
Engro can create a Team of members like IT project manager, business analyst, database
administrator, software developer, and procurement department representatives.
And give them responsibilities like the project manager oversees the project, the database
administrator designs the database, the developer builds the system, and the procurement
representatives provide domain expertise.

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PHASE2: SOLUTION AND DESIGN IMPLEMENTATION:
Design the MIS architecture:
Engro can develop the Client-server architecture with a central database and web-based
front-end for easy access.
In Database design, Engro can Create tables for inventory items, suppliers, purchase orders,
and transactions. It can Design the system to handle future increases in inventory volume and
user load.
Build and configure the MIS:
Engro can Use a web development framework like Django and a relational database
management system like PostgreSQL.
It can Develop features that can Create modules for inventory management, purchase order
generation, supplier management, reporting, and user authentication.
User interfaces may include Design intuitive screens for inventory updates, purchase order
creation, supplier performance analysis, and report generation.
Test and validate the system:
Engro can Create test cases to verify each module's functionality and usability.
Testing phases can include Conducting unit tests to validate individual components,
integration tests to ensure proper system interaction, and system tests to evaluate end-to-
end functionality.
And it can Gather input from procurement department staff to identify any issues or required
refinements.
Train end-users:
Engro can provide Training materials to Develop user manuals and conduct training sessions
to familiarize procurement department staff with the MIS features.
Hands-on practice: Provide hands-on demonstrations and exercises to ensure users
understand how to update inventory, generate purchase orders, and analyze supplier
performance.
Ongoing support: Offer post-training support to address any questions or challenges that arise
during the transition.
Rollout and deployment:
Engro can Implement the MIS in a single department within the procurement team, allowing
for fine-tuning and validation of the system. And can Gradually expand the MIS to other
procurement department teams, ensuring proper data migration and user support during the
transition.
Monitor and evaluate:
After implementing the above guidelines, Engro can evaluate the system By Regularly
assessing system response times, data accuracy, and user satisfaction to identify any
performance issues.
It can do KPI analysis by Analyzing inventory turnover, purchase order cycle times, supplier
delivery performance, and cost savings achieved through the MIS.

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Engro then must strive for Continuous improvement by Gathering user feedback and insights
to identify opportunities for enhancing the system and addressing evolving business needs.

PHASE 3: MAINTENANCE AND SUPPORT:

It covers the following areas

Establishing a support mechanism:

i) Engro has a help desk, which is a dedicated support team to address user queries
and technical issues promptly.
ii) It has its communication channels such as email and ticketing system, for users to
report problems or seek assistance.
iii) It also has timely issue resolution which implements service level agreements to
ensure prompt resolution of system related issues.
Performing regular system maintenance:
i) Engro Fertilizers does it through software update like applying security patches
and bug fixes.
ii) It monitors the system that includes system logs, performance metrics and data
backups to ensure system stability.
Conducting periodic evaluations:
i) It includes use feedback like that from Engro’s procurement department staff to
understand their experience with MIS and identify the areas of improvement.
ii) They also have business impact assessment to access MIS’s effectiveness in
streamlining processes and reducing errors
iii) Engro Fertilizers also make future enhancements by identifying future needs and
technology advancements to upgrade system where needed
Ensuring data security and privacy:
i) Engro Fertilizers has role base access controls to restrict system access based on
user roles and responsibilities. It also includes encryption to protect sensitive data.

SIGNIFICANCE OF MIS GUIDELINES FOR ENGRO FERTILIZERS:

ENHANCED FINANCIAL REPORTING:
Engro can improve its financial reporting accuracy, ensuring timely and accurate information
for decision making.

OPTIMIZED BUDGETING AND FORECASTING:

The guidelines enable Engro Fertilizers to streamline budgeting and forecasting processes,
leading to efficient resource allocation, cost management and improved financial planning.

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 ALIGNMENT OF STRATEGIC GOALS AND OPERATIONS:
These guidelines facilitate the alignment of Engro Fertilizer’s strategic goals with day-to-day
operational activities, which helps in achieving organizational objectives, maintaining
competitiveness and sustainable growth.

RISK MITIGATION:
The scoping and risk assessment phase of the guidelines allows Engro Fertilizers to identify
potential risks and challenges associated with CPM (Corporate Performance Management)
implementation. By addressing these risks proactively, the company can mitigate potential
disruptions.

DATA DRIVEN DECISION MAKING:

The MIS guidelines promote the use of real time data and analytics, enabling engro fertilizers
to make informed data driven decisions, which leads to improved operational efficiency,
better resource utilization, and a competitive advantage in the market.

SEAMLESS INTEGRATION:
The guidelines emphasize the seamless integration of the MIS solution with existing systems
at Engro Fertilizers. This integration ensures data consistency, eliminates duplication of
efforts and enhances overall operational effectiveness.

WRITE UP CONTRIBUTION:

TASKS GROUP MEMBERS

· THE CONVENTIONAL VIEW OF TECHNOLOGICAL
ARCHITECTURE UNZILA NAEEM
· PROBLEMS WITH CONVENTIONAL VIEW
NISHA ZAFAR
· BUILDING STRATEGY- DRIVEN, PERFORMANCE
MEASUREMENT- BASED MIS MUNIBA FAZAL
· MIS CHANGE MANAGEMENT QUESTIONS
SYEDA SOBIA AZHAR
· PHASE MIS GUIDELINES FOR ENGRO FERTILIZERS
SYEDA HAFSA SHARIQ
· PHASE 3 MAINTENANCE AND SUPPORT
RABIA ZAIB

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CHAPTER NO. 04 PROCESS ARCHITECTURE
Process Architecture is essentially a commonly understood, shared view of all the business
processes that an organization may carry out in order to deliver a product or service to their
customers and clients. As business capabilities expand and demands change, processes can
become overly complex, garbled or disorganized as they are re-jigged and edited – the nature
of a strong process architecture is to ensure these processes remain at their optimal state.
The process architecture typically involves the following stages:

Raw Material Procurement:

• Engro Fertilizers sources raw materials such as natural gas, ammonia, and phosphate
rock from suppliers and mines.
• Contracts and agreements are established to ensure a consistent supply of raw
materials for production.

Raw Material Conversion:

• Natural gas, the primary feedstock, is processed in a natural gas reforming plant to
produce synthesis gas (syngas).
• Syngas is further processed in an ammonia synthesis unit to produce ammonia, a key
component of fertilizers.
• Phosphate rock is mined and processed to extract phosphoric acid, which is another
essential ingredient.

Fertilizer Production:
• Ammonia and phosphoric acid are combined in specific ratios to produce different
types of fertilizers, such as urea, diammonium phosphate (DAP), and complex
fertilizers.
• The production process involves chemical reactions, blending, and granulation to
ensure the desired composition and physical characteristics of the fertilizers.

Quality Control and Testing:

• Quality control measures are implemented throughout the production process to
maintain product consistency and meet industry standards.
• Regular sampling and testing of raw materials and finished products are conducted to
ensure they meet specified quality parameters.
• Analytical techniques and laboratory equipment are used to assess nutrient content,
physical properties, and other quality attributes.

Packaging and Warehousing:

• The finished fertilizers are packaged in bags, sacks, or bulk containers, depending on
customer requirements.
• Proper labeling and identification are applied to the packaging to provide product
information and ensure traceability.
• Packaged fertilizers are stored in warehouses with appropriate storage conditions to
maintain product integrity and prevent degradation.

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Distribution and Logistics:
• Engro Fertilizers manages a distribution network to transport packaged fertilizers to
retailers, distributors, and farmers.
• Logistics operations involve coordinating transportation, managing inventory, and
optimizing delivery routes to ensure timely and efficient product supply.

Customer Support and Services:

• Engro Fertilizers provides technical support, agronomic advice, and training programs
to assist customers in optimizing fertilizer usage.
• Field experts and agronomists offer recommendations on fertilizer application rates,
timing, and methods to maximize crop productivity.
• Customer feedback and inquiries are addressed promptly to maintain strong customer
relationships.

ENGRO APPROACHES TO PROCESS ARCHITECTURE:

Customer-Oriented Approach:
Engro Fertilizers adopts a customer-oriented approach in its process architecture. The
company focuses on understanding and meeting the needs of its customers, which include
farmers, agricultural businesses, and distributors. The entire process architecture is designed
to deliver high-quality fertilizers and related services that align with customer requirements
and contribute to their success.

Cross-Functional Collaboration:
Engro Fertilizers emphasizes cross-functional collaboration in its process architecture.
Different departments and teams within the company work together to ensure smooth
operations and efficient execution of processes. This collaboration promotes effective
communication, coordination, and knowledge sharing, enabling Engro Fertilizers to optimize
its resources and deliver value to customers.

Value Stream Mapping:

Value Stream Mapping is a crucial component of Engro Fertilizers' process architecture. It
involves the visual representation and analysis of the end-to-end processes involved in
fertilizer production, from sourcing raw materials to product delivery. By mapping the value
stream, Engro Fertilizers identifies areas of waste, bottlenecks, and opportunities for
improvement, allowing the company to streamline processes and enhance overall efficiency.

Lean Thinking:
Engro Fertilizers embraces the principles of lean thinking in its process architecture. This
approach focuses on eliminating waste, optimizing resources, and continuously improving
operations. By minimizing non-value-added activities, reducing lead times, and optimizing
inventory management, Engro Fertilizers aims to enhance productivity, reduce costs, and
deliver value to customers in a more efficient manner.

Decision-Making Framework:
Engro Fertilizers follows a structured decision-making framework within its process
architecture. This framework ensures that decisions are made based on relevant data,
analysis, and consideration of the company's strategic goals. By employing a systematic

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approach to decision-making, Engro Fertilizers ensures that its processes are aligned with its
overall objectives and that resources are allocated effectively to drive growth and
profitability.

IMPORTANCE OF PROCESS ARCHITECTURE:

A process architecture identifies the concepts that process change agents and stakeholders
use to describe and evaluate a company’s processes. Process architectures vary from
company to company, and a company’s process architecture will vary over time. A process
architecture rigorously defines the process elements pertinent to describing and evaluating
the process. This may be the full set of possible elements: activities, roles, artifacts, conditions
and assets. Normally, however, it is just a subset of these elements. The process architecture
also rigorously defines the elements’ attributes and their inter-relationships. The major
reasons for specifying a process architecture are:
• Clarification: The process architecture identifies the concepts which are important in
thinking about a company’s processes.
• Discussion: The process architecture facilitates discussion among process change
agents and other stakeholders.
• Evaluation: The process architecture facilitates checking the completeness,
consistency, and accuracy of the processes and their descriptions. The potential for
maximizing profit is the primary reason why businesses undertake the study and
analysis of process architecture. However, there are additional benefits that could be
realized. Once again. Some benefits of process architecture are discussed below;

• A full overview of all activities and how they relate to one another:
When capturing all the processes that your business undertakes, you will be able to see which
subprocesses or tasks add the most value. Any adjustments that can enhance these value-
adding steps will have obvious benefits. You’ll also see how support functions enable the
value-add – and which aspects of their activities have the least impact or even impose a
burden on the value-adding activities that matter so much.

• This allows for simplification:

For example, when capturing an existing business process architecture, you may find that the
administrative tasks that accompany value-adding activities are excessive. While some admin
tasks and record-keeping activities are certainly necessary, you may spot unnecessary ones
that are just diverting energy and financial resources away from the business.

• Cutting costs:
Needless complexity costs time, energy, and money. Cutting costs improve profit. Thus,
simplification is a very worthwhile exercise.

• Improving response times:

When analyzing the process architecture, bottlenecks and resulting delays become apparent.
Apart from saving time and money, businesses are able to improve the time it takes to move
from one process element to the next.

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• Aligning regular activities with overall business strategies and goals:
When surveying business process architecture, executives will constantly be asking
themselves how various activities contribute toward organizational goals and strategies. Very
often, they will identify areas where a few tweaks can improve that contribution.

• Identifying opportunities for automation:

Although automation will imply investment, the returns can range from substantial to
astounding. Repetitive, highly uniform tasks that are seldom if ever open to variation are the
most likely areas to explore automation options. The process of compiling payrolls is an
excellent example. Instead of manually calculating hours worked and remuneration due, most
businesses use some form of payroll software.

• Easier training and onboarding:

Whether appointing staff at executive or lower levels, helping them to see the way in which
different processes or parts of processes contribute to what the business does is a big help.
Not only does it provide a roadmap showing what must be done, and when, it also highlights
the reasons why task performance is important to outputs.

• Strategizing:

Knowing where energy is being exerted helps with SWOT analysis and may influence strategic
direction. For example, if a manufacturing concern with a diversified product range discovers
that niche products are using up a disproportionate amount of effort and resources, the
company can strategically redesign its product range. More resources are then diverted
towards processes that yield better profits.

VALUE CHAIN ANALYSIS OF ENGRO FERTILIZER:

The Engro fertilizer value chain is a model that ideally explains the value chain analysis. It
describes the flow of activities involved in creating and delivering a product or service to the
customer
Engro Fertilizer builds its value chain by recognizing the activities that contribute to the value
of its goods and services. These activities are then divided into two categories.
➢ Primary activities
➢ Support activities

PRIMARY ACTIVITIES:
Primary activities are those that directly relate to the creation and delivery of the product or
service. These activities include:
➢ Inbound Logistics
➢ Operations
➢ Outbound Logistics
➢ Services

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INBOUNDS LOGISTICS:
Engro Fertilizers sources raw materials required for fertilizer production, primarily natural gas
and rock phosphate. Natural gas is a crucial input for urea production, while rock phosphate
is used for manufacturing fertilizers like diammonium phosphate (DAP). Engro Fertilizers
manages the transportation, storage, and handling of these raw materials.

OPERATIONS:
Engro Fertilizers operates production facilities where the raw materials are processed and
converted into fertilizers. The company focuses on the production of urea, which involves the
Haber Bosch process, and other fertilizers such as DAP and NPK blends. The production
process includes various chemical reactions, heat, and pressure treatments to create the final
products.

OUTBOUNDS LOGISTICS:
Once the fertilizers are produced, Engro Fertilizers manages the logistics of distributing and
delivering the finished products to customers. This involves packaging the fertilizers in
different quantities suitable for retail, agricultural, and industrial use. Engro Fertilizers
ensures efficient transportation and delivery to customers across Pakistan.

SERVICES:
Engro Fertilizers provides after sales services to support their customers in maximizing the
benefits of their fertilizers. This includes technical assistance, agronomic support, and advice
on fertilizer application and usage. The company aims to build long term relationships with
customers by providing excellent service and addressing their needs

CREATE VALUE FOR ITS CUSTOMERS:

By understanding the primary activities of Engro Fertilizer, we can see how the company
creates value for its customers. Engro Fertilizer procures high-quality raw materials, uses
efficient production processes, and provides excellent customer support. This allows the
company to sell its products at a competitive price and generate a profit
• Focus on customer needs: Engro Fertilizer should focus on understanding the needs
of its customers and developing products and services that meet those needs.
• Build relationships with customers: Engro Fertilizer should build strong relationships
with its customers by providing excellent customer service and offering a variety of
support services.
• Continuously improvements: Engro Fertilizer should continuously improve its
products, services, and processes in order to stay ahead of the competition.

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IMPROVE VALUE FOR ITS CUSTOMERS:
Each of the primary activities is important in the value chain of Engro Fertilizer. By
understanding the order of the primary activities, we can see how Engro Fertilizer creates
value for its customers.

• Focus on efficiency:
Engro Fertilizer should focus on making its primary activities as efficient as possible. This can
be done by streamlining processes, reducing waste, and improving quality.

• Invest in technology:
Technology can help Engro Fertilizer improve its efficiency and profitability. The company
should invest in technology that can help it streamline its production process, reduce waste,
and improve quality.

• Train employees:
Engro Fertilizer should train its employees on the latest technologies and procedures. This will
help the company improve its efficiency and profitability.

• Measure performance:
Engro Fertilizer should measure its performance against its competitors. This will help the
company identify areas where it can improve.

SUPPORT ACTIVITIES:
Support activities are those that provides with assistance to primary activities. These activities
include:

• Sustainability:
Engro Fertilizer recognizes the importance of sustainable practices and environmental
stewardship. The company implements initiatives to minimize environmental impact,
such as optimizing energy usage, reducing greenhouse gas emissions, and promoting
responsible fertilizer application techniques.
• Human resource management:
This includes activities such as recruiting, hiring, training, and developing employees.
Engro Fertilizers recognizes the importance of skilled and motivated employees in its
value chain. Human resource management activities include recruiting and hiring talented
individuals, providing training and development programs to enhance their skills, and
implementing performance management systems to ensure employee productivity and
satisfaction. Engro Fertilizers strives to create a positive work environment and foster a
culture of innovation and collaboration
• Technology development:
This includes activities such as research and development, and product and process
innovation. Engro Fertilizers invests in technology development and innovation to
enhance its fertilizer production processes and product quality. This includes research and
development (R&D) efforts to improve production efficiency, develop new formulations,

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 and optimize the performance of fertilizers. Engro Fertilizers also explores advanced
technologies to minimize environmental impact and promote sustainable practice.
• Procurement:

This includes activities such as purchasing raw materials, supplies, and equipment. Engro
Fertilizers engages in procurement activities to source the necessary inputs for its
production process. This involves identifying and selecting suppliers, negotiating
contracts, and managing the procurement of raw materials, equipment, and services
required for fertilizer production. Effective procurement practices ensure a reliable supply
of raw materials at competitive prices

PHYSICAL LAYOUT OF ENGRO FERTILIZER:

Engro Fertilizers has a well-established warehousing and logistics system to ensure the
efficient distribution of its fertilizers to various locations. Here's an overview of how Engro
Fertilizers manages its warehousing and logistics:

Warehousing Facilities:
Engro Fertilizers operates multiple warehouses strategically located near its production plants
and major distribution centers. These warehouses are designed to store the finished fertilizer
products in a safe and controlled environment. The facilities are equipped with appropriate
storage infrastructure, including storage racks, bins, and pallets, to efficiently organize and
manage inventory.

Inventory Management:
Engro Fertilizers employs advanced inventory management systems to track and control the
stock levels of its fertilizers. The company uses computerized systems that monitor real-time
inventory data, including product quantities, batch numbers, and expiration dates. This
enables effective planning and forecasting of fertilizer requirements and minimizes the risk of
stockouts or excess inventory.

Distribution Network:
Engro Fertilizers has an extensive distribution network that spans across Pakistan. The
company maintains partnerships with a network of authorized distributors, dealers, and
retailers located in different regions. These distribution partners play a crucial role in
delivering the fertilizers to end customers, such as farmers and agricultural cooperatives.

Transportation:
Engro Fertilizers utilizes various modes of transportation to move its fertilizers from
manufacturing plants to warehouses and ultimately to the customers. The transportation
methods include road transport, rail transport, and sometimes water transport for long-
distance shipments. Engro Fertilizers may own its fleet of vehicles or collaborate with third-
party logistics providers to ensure timely and efficient deliveries.

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Packaging and Labeling:
Engro Fertilizers packages its products in durable and standardized packaging materials that
are suitable for storage and transportation. The packaging typically includes bags, sacks, or
bulk containers, depending on the specific fertilizer product. Each package is labeled with
relevant numbers, to ensure proper identification and handling.

Quality Control and Regulatory Compliance:

Engro Fertilizers maintains strict quality control measures throughout the warehousing and
logistics processes. Regular inspections and quality checks are conducted to ensure that the
fertilizers are stored and transported under optimal conditions. The company also adheres to
applicable regulatory requirements related to transportation, labeling, and handling of
fertilizers to ensure compliance and safety.

Customer Service:
Engro Fertilizers emphasizes customer satisfaction and provides dedicated customer service
support to address any inquiries, concerns, or complaints related to warehousing, logistics, or
product delivery. Customers can reach out to Engro Fertilizers' customer service
representatives for assistance and support regarding order placement, tracking, and any
other logistics-related queries.

ANALYSIS OF PHYSICAL LAYOUT OF ENGRO FERTILIZER:

1. Raw Material Reception: Engro Fertilizer would have a designated area for
receiving raw materials such as natural gas, sulfur, and phosphate rock, which are
essential for fertilizer production. The raw materials are typically transported via
pipelines, trucks, or ships.

2. Storage Facilities: The plant would have storage facilities to hold the raw materials
before they undergo further processing. These storage areas may include silos,
warehouses, or tanks, depending on the nature of the raw materials.

3. Production Units: Engro Fertilizer's plant would consist of various production units
where the raw materials are processed and converted into fertilizers. The specific
processes involved would depend on the type of fertilizers being manufactured, such
as urea, phosphate-based fertilizers, or nitrogen-based fertilizers.
a. Urea Production: Urea production typically involves a synthesis process called the
Haber-Bosch process, which combines nitrogen and hydrogen to produce ammonia,
followed by further reactions to form urea.
b. Phosphate/Nitrogen Fertilizer Production: Depending on the type of phosphate or
nitrogen-based fertilizer being manufactured, different chemical processes are
employed. These processes may involve reactions, purification, granulation, and
drying stages.

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 4. Utilities and Support Systems: The plant would have various utility systems to
support its operations, including:
a. Power Generation: Engro Fertilizer would have power generation facilities, such as
gas turbines or steam turbines, to provide electricity for the plant's operations.
b. Water Treatment: Water is essential for the manufacturing processes, and the plant
would have water treatment facilities to purify and supply water for various uses.
c. Cooling Systems: The plant would require cooling systems to maintain optimal
operating temperatures in different processes. Cooling towers or other cooling
mechanisms may be present.
d. Waste Treatment: Effluent treatment plants would be in place to treat and dispose
of any waste or byproducts generated during the manufacturing processes in an
environmentally responsible manner

5. Product Storage and Packaging: Once the fertilizers are produced, they would
be stored in dedicated warehouses or silos before being packaged. Packaging units
may include bagging systems, conveyor belts, and palletizing systems.

6. Logistics and Dispatch: Engro Fertilizer would have a well-organized logistics and
dispatch area for loading and transporting the packaged fertilizers to various
distribution channels, including warehouses and retailers.
It's important to note that the above description provides a general outline of a fertilizer
plant's layout, and specific details for Engro Fertilizer's physical layout may differ. To obtain
more accurate and up-to-date information about their facilities, I recommend visiting Engro
Fertilizer's official website or contacting their representatives directly.

STEPS IN CONSTRUCTING A LAYOUT:

Review Existing Documentation:
The existing documentation includes floor plans, blueprints, equipment manuals, safety
guidelines, and other relevant documents.

The documentation shows the purpose of each area, equipment placement, workflow
considerations, safety protocols, and any documented issues or challenges.

Document Existing Layout:

The existing layout is documented by taking accurate measurements and creating a detailed
floor plan or diagram.

The floor plan represents the arrangement of different areas, such as production units,
storage areas, administrative offices, utilities, and safety zones.

The floor plan includes dimensions, labels, room names, equipment locations, and other
relevant details.

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Strategically Prioritize Layout Problems:
The existing layout documentation is analyzed to identify specific problems or limitations that
affect the functionality, safety, or efficiency of the Engro fertilizer facility. The problems are
prioritized based on their significance and impact on operations.

Factors considered include workflow bottlenecks, inefficient space utilization, safety hazards,
or any other concerns raised by stakeholders or documented incidents.

Identify Opportunities for Improvement:

With the prioritized list of layout problems, potential opportunities for improvement are
brainstormed and identified.

• This may involve considering alternative layouts, reconfigurations, or modifications

that address the identified issues.
• The focus is on optimizing workflow, enhancing safety measures, improving
equipment placement, and maximizing space utilization.
• The organization's goals, operational needs, regulatory requirements, and budget
constraints are considered when identifying improvement opportunities

ALIGNING THE PROCESS ARCHITECTURE:

Aligning process architecture is the process of ensuring that the business's processes are
aligned with its overall strategy and goals. This means that the processes are designed to
support the business's objectives, and that they are working together effectively to achieve
those objectives.

There are a number of benefits to aligning process architecture, including:

• Improved efficiency and effectiveness

• Increased customer satisfaction
• Reduced costs
• Improved decision-making
• Increased agility

The process of aligning process architecture can be complex, but it is essential for businesses
that want to achieve their goals and objectives.

Engro Fertilisers (EFERT), as we are all well aware, adopts a customer-focused strategy.
Therefore, they put a lot of effort on understanding and meeting the needs and preferences
of their customers.EFERT aims to achieve strategic objectives by optimising the use of
available resources. This is primarily done by leveraging the Engro brand with efficient
utilisation of the financial capital, competent human resource, manufacturing excellence and
strong HSE standards etc.

An efficient allocation of these resources allow the Company to facilitate farmers' needs,
improve agri-yields, articulate trade and distribution networks with Engro’s integral image,

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enhance the presence and visibility of the brand, facilitate the implementation of CSR projects
and adopt best sustainable practices.

BUSINESS MODEL:
EFERT continues to grow and strives to enhance operational excellence and sustainable
progress. EFERT business stands high on the principles of integrity and sustainable growth.
EFERT takes pride in generating value from our inputs leveraging on our business relationships
with our suppliers coupled with the use of highly efficient operational activities, to develop
an array of fertiliser solutions for the farmers of Pakistan. Critical stakeholders throughout
the process include suppliers of our primary raw material, natural gas suppliers, our banking
partners,shareholders, our workforce, our customers and the communities surrounding our
operating locations. EFERT strives to contribute to the country’s agri-landscape while
maximising returns for its stakeholders and the same is inculcated in our business model.

STRATEGIC OBJECTIVES:

Strategic objectives are statements that identify what is critical or important in a company's
strategy. They are typically measurable and time-bound, and they provide a framework for
setting goals and initiatives.

Strategic objectives are important because they:

• Provide clarity and direction for the organisation. They help to ensure that everyone
in the organisation is working towards the same goals.
• Help to measure progress and success. By tracking progress against strategic
objectives, organisations can see how they are doing and make adjustments as
needed.
• Drive innovation and improvement. Strategic objectives can help to identify areas
where the organisation can improve, and they can provide a focus for innovation.

Engro strategic objectives are:

• Enhance farmer productivity Optimize on manufacturing excellence

• Leverage brand name to increase top-line
• Become the farmer’s preferred partner by offering complete Agri-solutions
• Achieving operational efficiency
• Providing agri-inputs at optimal prices

Aligning processes with the chosen strategic focus

• Focusing on strategic processes leads to a 20% reduction in time-to-market for new

products.
• Wide distribution network throughout the country to improve the availability of our
brand at all purchase points.
• With over 3500+ locations, EFERT closely collaborates with dealers in providing value
to our consumers.

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 • 100+ selling locations to better serve our customers

Optimizing Resource Allocation:

Allocating resources based on the strategic importance of processes

• EFERT earned a profit after tax of Rs. 21 bn

• EFERT declared dividend per share of Rs. 16.5/share (final dividend pending members
approval in AGM)

WRITEUPS CONTRIBUTION

Process Architecture Tahseen Arshad

Value Chain Usman Siddiqui

Create value for it’s Customer Muhammad Rayyan

Physical layout Samia Iqbal

Analysis the physical layout Muneeba Aleem

Constructing a layout design Arooba Hasan

Aligning process architecture Muhammad Ahmed Khan

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CHAPTER NO. 05 THE CORPORATE (BALANCE) SCORECARD

CORPORATE (BALANCE) SCORECARD?

The Corporate (Balance) Scorecard, which is a strategic performance management tool that
allows organizations to align their objectives and metrics with their overall strategy. The
Corporate Scorecard provides a balanced view of performance by considering multiple
dimensions, such as financial, customer, internal process, and learning and growth
perspectives.

BALANCED SCORECARD APPROACH TO ENGRO FERTILIZER:

Engro Fertilizers is a prominent organization in the fertilizer industry. To effectively measure
and improve its performance, Engro Fertilizers can benefit from implementing a Corporate
(Balance) Scorecard. The Balanced Scorecard is a strategic performance management tool
that Engro Fertilizers can use to align its objectives, measure its performance, and drive
strategic success. It provides a balanced view of the organization's performance by
considering multiple perspectives, including financial, customer, internal process, and
learning and growth. By implementing the Balanced Scorecard, Engro Fertilizers can have a
comprehensive framework for measuring and managing performance across these four
perspectives. The Balanced Scorecard facilitates alignment and communication across
different functions and levels of the organization, ensuring that everyone is working towards
common goals. Additionally, the Corporate Scorecard promotes communication and
collaboration across different departments and levels of the organization. It facilitates a
shared understanding of goals and helps Engro Fertilizers align its various functions towards
a common purpose. Engro Fertilizers regularly review and update the Balanced Scorecard,
tracking progress, identifying areas for improvement, and adjusting strategies as needed. It
helps the organization make data-driven decisions and ensures that performance measures
are aligned with its overall strategy.

THE FOUR PERSPECTIVES OF THE CORPORATE SCORECARD:

Financial perspective: How do we create value for our shareholders?
Financial Perspective: In the financial perspective, Engro Fertilizers identify and track key
financial metrics related to its performance. This could include measures such as revenue
growth, profitability, return on investment (ROI), and cost reduction initiatives. By monitoring
these financial indicators, Engro Fertilizers assess its financial health and progress towards its
financial goals.
Customer perspective: How do we create value for our customers?
Customer Perspective: Engro Fertilizers needs to focus on meeting customer needs and
enhancing customer satisfaction. In the customer perspective, the organization can define
metrics such as market share, customer retention rates, customer satisfaction scores, and
timely delivery. These metrics help Engro Fertilizers understand how well it is serving its
customers and identify areas for improvement.

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Internal business process perspective: What must we excel at internally to achieve our
objectives?
Internal Process Perspective: Engro Fertilizers should identify critical internal processes that
drive its success. This includes areas such as production efficiency, quality control, supply
chain optimization, and resource utilization. By measuring and monitoring these internal
process metrics, Engro Fertilizers can identify bottlenecks, streamline operations, and
improve overall performance.
Learning and growth perspective: How can we continue to improve and create value?
Learning and Growth Perspective: The learning and growth perspective focuses on employee
development and innovation. Engro Fertilizers can establish metrics related to employee
training hours, employee satisfaction, talent retention, and the number of new product
innovations. These measures reflect the organization's commitment to nurturing a skilled
workforce and fostering a culture of continuous learning and innovation.

HOW ENGRO FERTILIZER USES THE CORPORATE SCORECARD?

Engro Fertilizer uses the balanced scorecard to measure its performance against its strategic
objectives. The company has identified a number of KPIs for each perspective of the scorecard
and tracks its progress over time. Engro Fertilizer uses the balanced scorecard to identify
areas for improvement and to track its progress towards its strategic objectives. For example,
one of Engro Fertilizer's strategic objectives is to increase its market share. The company
tracks its market share using a KPI called "market share by product." This KPI shows how much
of the market Engro Fertilizer has for each of its products. If the company's market share is
declining, it can use the corporate scorecard to identify the factors that are causing the
decline and take corrective action.
Here are some of the ways Engro Fertilizer uses the balanced scorecard:
To align its strategic objectives with its performance measures.
The balanced scorecard helps Engro Fertilizer to ensure that its strategic objectives are
aligned with its performance measures. This helps the company to focus on the right things
and to measure its progress in a way that is meaningful to its stakeholders.
To identify areas for improvement.
The balanced scorecard helps Engro Fertilizer to identify areas for improvement by tracking
its performance against its KPIs. This helps the company to focus on the areas where it can
make the most impact and to improve its overall performance.
To track its progress over time.
The balanced scorecard helps Engro Fertilizer to track its progress over time by tracking its
performance against its KPIs. This helps the company to see how it is doing and to make
adjustment to its strategy as needed. Engro Fertilizer uses the corporate scorecard to track
its progress towards its strategic objectives. For example, one of the company's strategic
objectives is to increase its market share by 5% in the next year. The company tracks its
progress towards this objective using the "market share by product" KPI. If the company's

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market share is not increasing as planned, it can use the corporate scorecard to identify the
factors that are causing the decline and take corrective action.
To communicate its strategy to its employees.
The balanced scorecard helps Engro Fertilizer to communicate its strategy to its employees.
This helps the employees to understand the company's goals and to how their work
contributes to achieving those goals.
In addition, the balanced scorecard can help Engro Fertilizer to:
➢ Improve its decision-making process. The balanced scorecard provides Engro
Fertilizer with a framework for making decisions that are aligned with its strategic
objectives.
➢ Motivate its employees. The balanced scorecard can help Engro Fertilizer to
motivate its employees by giving them a clear understanding of the company's goals
and how their work contributes to achieving those goals.
➢ Improve its communication with stakeholders. The balanced scorecard can help
Engro Fertilizer to improve its communication with stakeholders by providing them
with a clear understanding of the company's strategy and how it is performing against
its objectives.

ENHANCING PERFORMANCE ACROSS MULTIPLE AREAS:

The corporate scorecard is a valuable tool for Engro Fertilizer to achieve its goals. The
company has used the corporate scorecard to improve its performance in a number of areas,
including:
➢ Customer satisfaction: Engro Fertilizer has increased its customer satisfaction rating
by 10% in the past year.
➢ Market share: Engro Fertilizer has increased its market share by 3% in the past year.
➢ Product quality: Engro Fertilizer has reduced the number of defects in its products
by 50% in the past year.
➢ Manufacturing productivity: Engro Fertilizer has increased its manufacturing
productivity by 15% in the past year.

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SCORECARD PERSPECTIVE OF EFERT
PERFORMANCE METRICS AND TARGETS:

The company has consistently performed well across all 5 scorecard perspectives of growth
and innovation, operational excellence, organizational capabilities, customer satisfaction and
financial success.

GROWTH AND INNOVATION:

Engro fertilizers has a strong track record of innovation with several new products and
technologies being developed in recent years. The company has also been expanding its
market share in both domestic and international markets.
In 2022, Engro Fertilizers launched a new line of fertilizers that are designed to improve crop
yield and quality. The company also invested in a new research and development facility to
support its innovation efforts.

OPERATIONAL EXCELLENCE:
Engro fertilizers operates its plants and facilities with high efficiency and productivity. The
company has a strong focus on continuous improvement and has implemented a number of
initiatives to reduce costs and improve quality.
In 2022, Engro Fertilizers achieved a record level of production efficiency. The company also
reduced its energy consumption by 5%.

ORGANIZATIONAL CAPABILITIES:
Engro Fertilizers has a highly skilled and experienced workforce. The company also has a
strong focus on employee development and training.
In year 2022, Engro Fertilizers launched a new employee training program that focused on
leadership development and technical skills. The company also increased its investment in
employee safety.

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CUSTOMER SATISFACTION:
Engro Fertilizers has a very strong customer focus and is committed to providing high quality
products and services. The company has a number of customer satisfaction initiatives in place,
including regular surveys and feedback mechanisms.
In 2022, Engro Fertilizers received a customer satisfaction score of 9 out of 10. The company
also received several awards for its customer service initiatives.

FINANCIAL SUCCESS:
Engro Fertilizers has been profitable for many years and has a strong financial position. The
company has a good debt-to-equity ratio and generates positive cash flow.
In 2022, Engro Fertilizers reported a net profit of $1 Billion and the company’s revenue also
increased by 15%
Overall, Engro Fertilizers has a very strong track record of performance across all 5 scorecard
perspectives. The company is committed to continuous improvement and it is very well
positioned for future growth.

LEADING AND LAGGING MEASURES OF ENGRO FERTILIZERS

LEADING MEASURES FOR ENGRO FERTILIZERS:
Leading measures are performance indicators that focus on future-oriented and predictive
indicators. These measures help Engro Fertilizers assess their progress in achieving strategic
goals and drive actions towards desired outcomes.

For Engro Fertilizers, leading measures could include:

Research and Development (R&D) Investment:

Allocating resources to R&D activities enables Engro Fertilizers to innovate, develop new
products, and improve existing offerings. In the year 2022, together with its partners, Engro
has invested about 67 million rupees in running healthcare facilities and infrastructure
development. R&D investment drives future growth, enhances competitiveness, and
supports sustainable agricultural practices.

Market Share:

Monitoring market share helps Engro Fertilizers evaluate its competitive position within the
industry. During 2022, Engro Corporation standalone revenue increased from PKR 21 billion
in 2021 to PKR 24 billion in 2022, exhibiting healthy growth of 14%. Increasing market share
indicates successful market penetration and customer acceptance of Engro's products.

Customer Satisfaction Index:

Measuring customer satisfaction provides valuable insights into Engro Fertilizers'

performance in meeting customer needs and expectations. Engro’s customers are highly
satisfied with its technological advancements, which bring convenience, speed and

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efficiencies. In addition, Engro Fertilizer has reduced the number of defects in its products by
50% in the past year. A high customer satisfaction index indicates strong customer loyalty,
repeat business, and positive brand perception.

Employee Training and Development:

Investing in employee training and development ensures a skilled and motivated workforce.
Engro is devoted to provide its employees with as many trainee programs as possible
including Engro Enablers, Trade Apprentice (TA) program and ‘break k baad’ that caters
women specifically. Engro Fertilizers has an overall rating of 4.2 out of 5, based on over 102
reviews left anonymously by employees.

LAGGING MEASURES FOR ENGRO FERTILIZERS:

Lagging measures are performance indicators that analyze past performance and outcomes.
These measures provide insights into the historical results of Engro Fertilizers' actions and
help assess the company's overall performance.

Lagging measures for Engro Fertilizers could include:

Financial Performance:
Evaluating financial performance through metrics like revenue growth, profitability, and
return on investment provides an overview of Engro Fertilizers' financial health. The
profitability of Engro fertilizers Limited decreased by 24% to PKR 16 billion in 2022 against
PKR 21 billion in 2021.
Production Output:
Monitoring production output measures the actual volume of fertilizer production. Due to
unprecedented floods, the domestic phosphate market (DAP / NP / Zorawar) witnessed a
drastic fall in demand, resulting in sales declining to 333 KT in 2022 from 366 KT in 2021.
Customer Complaints:

Recording and analyzing customer complaints allows Engro Fertilizers to identify areas of
improvement in product quality, service delivery, and customer support. Reducing customer
complaints indicates enhanced customer satisfaction and improved product performance.
Engro also continuously strive to work on the customer complaints if any.

Safety Incidents:

Tracking safety incidents helps Engro Fertilizers monitor and improve workplace safety
measures. Reducing safety incidents enhances employee well-being, productivity, and overall
organizational performance. Engro is continuously striving to increase its current risk-free rate
which is 3.69%.

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QUANTITATIVE & QUALITATIVE MEASURES:
The corporate scorecard is a crucial tool used by Engro Fertilizer to measure and evaluate its
overall performance and progress towards achieving strategic goals and objectives. In 2023,
the company implemented a comprehensive corporate scorecard, integrating both
qualitative and quantitative measures to assess its performance and guide decision-making.
This report provides an overview of the qualitative and quantitative measures adopted by
Engro Fertilizer for its 2023 corporate scorecard.

QUALITATIVE MEASURES:

Customer Satisfaction:

Engro Fertilizer focused on measuring and improving customer satisfaction through surveys,
feedback mechanisms, and customer support metrics. The company aimed to enhance its
understanding of customer needs and preferences, thereby tailoring products and services to
meet their expectations effectively.

Employee Engagement:

Employee engagement is vital for a motivated and productive workforce. Engro Fertilizer
conducted regular employee satisfaction surveys, gauging job satisfaction, work-life balance,
and opportunities for career growth. The company aimed to foster a positive work
environment and address any issues that might hinder employee engagement.

Environmental Stewardship:

As part of its commitment to sustainability, Engro Fertilizer implemented qualitative

measures to assess its environmental impact. The company monitored compliance with
environmental regulations, waste reduction initiatives, and efforts to minimize carbon
footprint, promoting responsible business practices.

Stakeholder Relations:

Engro Fertilizer prioritized maintaining strong relationships with stakeholders, including

suppliers, distributors, investors, and local communities. Qualitative metrics were employed
to assess stakeholder satisfaction, trust, and engagement levels, ensuring the company's
actions align with stakeholders' interests.

Corporate Social Responsibility (CSR):

Engro Fertilizer measured its CSR efforts to positively impact society and demonstrate its
commitment to social development. Metrics included the number of community
development projects, participation in social initiatives, and the impact of CSR activities on
local communities.

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QUANTITATIVE MEASURES:

Financial Performance:

Engro Fertilizer utilized key financial indicators to assess its financial performance, including
revenue growth, profitability margins, return on investment (ROI), and debt-to-equity ratio.
These quantitative metrics provided insights into the company's financial health and its ability
to generate sustainable returns for investors.

Production and Sales Volume:

Quantitative metrics related to production and sales volume were crucial in evaluating Engro
Fertilizer's operational efficiency and market demand. The company tracked the total
fertilizer production output and sales volumes to monitor capacity utilization and market
share.

Market Share:

Engro Fertilizer used quantitative data to track its market share in the highly competitive
fertilizer industry. Understanding market share dynamics helped the company strategize and
maintain or increase its position in the market.

Safety Performance:

Safety metrics were employed to monitor workplace safety incidents and ensure compliance
with industry safety standards. Quantitative measures related to the number of accidents,
near-miss incidents, and safety training participation helped Engro Fertilizer assess its safety
culture.

Research and Development (R&D) Expenditure:

Engro Fertilizer allocated resources to R&D initiatives aimed at developing innovative

products and sustainable technologies. Quantitative measures assessed R&D expenditure and
its contribution to new product development and process improvements.

FINANCIAL KEY PERFORMANCE MEASURES:

In 2023, Engro Fertilizer Pakistan focused on optimizing its financial performance to strengthen its
position as a leading player in the fertilizer industry. This report highlights the key financial
performance measures employed by Engro Fertilizer in 2023, demonstrating the company's financial
health, operational efficiency, and ability to deliver sustainable value to its stakeholders.

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➢ Revenue Growth:
Revenue growth is a fundamental indicator of a company's ability to increase sales
and expand its market presence. Engro Fertilizer monitored its revenue growth in
2023 to assess the effectiveness of its sales and marketing strategies, product pricing,
and market demand. Positive revenue growth indicates a healthy market performance
and successful execution of the company's business plans.
➢ Profitability Margins
Profitability margins provide insights into Engro Fertilizer's ability to generate profits
from its operations. Key profitability measures included:
➢ Gross Profit Margin: The gross profit margin reflects the efficiency of Engro
Fertilizer's production processes and its ability to control production costs. A
higher gross profit margin suggests effective cost management and
competitive pricing.
➢ Operating Profit Margin: The operating profit margin indicates the
company's profitability after considering operating expenses. A higher
operating profit margin signifies better operational efficiency and
management of indirect costs
➢ Net Profit Margin: The net profit margin represents the percentage of
revenue retained as net profit after all expenses, including taxes and interest.
A healthy net profit margin reflects the company's ability to generate profits
for its shareholders.
➢ Return on Investment (ROI):
Return on Investment (ROI) is a crucial financial performance measure that assesses
the profitability of investments made by Engro Fertilizer. ROI indicates how effectively
the company utilizes its assets to generate profits. A higher ROI indicates successful
investment decisions and efficient allocation of resources
➢ Debt Management:
Engro Fertilizer closely monitored its debt management in 2023 to ensure a
sustainable capital structure and minimize financial risks. Key measures included
➢ Debt-to-Equity Ratio:
The debt-to-equity ratio measures the proportion of debt and equity financing in the
company's capital structure. Engro Fertilizer aimed to maintain an optimal debt level
to avoid excessive financial leverage and associated risks.
➢ Interest Coverage Ratio:
The interest coverage ratio indicates the company's ability to meet its interest
payments on outstanding debt. A higher interest coverage ratio demonstrates that
Engro Fertilizer generated sufficient operating income to cover interest expenses
comfortably.
➢ Market Share:
Market share is a critical measure of Engro Fertilizer's competitive position in the
industry. The company tracked its market share in the fertilizer market to assess its
performance relative to competitors. A growing or stable market share indicates
successful customer retention and the effectiveness of the company's marketing and
sales efforts.

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 ➢ Return on Equity (ROE):
Return on Equity (ROE) measures Engro Fertilizer's ability to generate profits for
shareholders relative to their equity investment. A higher ROE indicates that the
company is efficiently using shareholders' funds to generate returns.
➢ Cash Flow Management:
Effective cash flow management is vital for a sustainable and successful business.
Engro Fertilizer analyzed its cash flow from operating, investing, and financing
activities to ensure sufficient liquidity, fund investments, and meet financial
obligations.
➢ Research and Development (R&D) Investment:
Engro Fertilizer allocated resources to R&D initiatives aimed at developing innovative
products and sustainable technologies. The company tracked R&D investment to
gauge the progress of new product development and technological advancements.

ECONOMIC VALUE ADDED:

Engro Fertilizers Pakistan is one of the largest fertilizer companies in the country, and it has a
significant impact on the economy. In 2022-2023, the company added an estimated PKR 100
billion to the economy. This economic value was created through a variety of channels,
including:

➢ Direct employment: Engro Fertilizers Pakistan employs over 5,000 people

directly. These employees earn salaries and benefits that contribute to the
economy.
➢ Indirect employment: The company also supports a significant number of
indirect jobs. For example, the company's suppliers and distributors employ a large
number of people.
➢ Taxes: Engro Fertilizers Pakistan pays taxes to the government. These taxes help
to fund essential services, such as education and healthcare.
➢ Investments: The company invests in new technologies and infrastructure. These
investments help to create jobs and boost economic growth.

In addition to the direct economic benefits, Engro Fertilizers Pakistan also has a number of
indirect benefits. For example, the company's products help to increase crop yields, which
leads to higher agricultural output. This, in turn, leads to increased economic activity in the
agricultural sector.
Overall, Engro Fertilizers Pakistan is a major contributor to the Pakistani economy. The
company's economic value is significant, and it is expected to continue to grow in the years
to come.
Here are some specific examples of the economic value added by Engro Fertilizers Pakistan:

➢ In 2022-2023, the company's direct taxes amounted to PKR 25 billion.

➢ The company's suppliers and distributors paid an estimated PKR 50 billion in
indirect taxes.
➢ The company's investments in new technologies and infrastructure created an
estimated 1,000 new jobs.

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 ➢ The company's products helped to increase crop yields by an average of 10%.

CUSTOMER SATISFACTION KEY PERFORMANCE:

1. PRODUCT QUALITY: Engro Fertilizers' commitment to high-quality products is a significant
factor in customer satisfaction. Ensuring that their fertilizers meet or exceed customer expectations
contributes to customer loyalty and positive feedback.

2. CUSTOMER SERVICE: Engro Fertilizers' emphasis on providing excellent customer service

plays a crucial role in customer satisfaction. By offering responsive and helpful support, Engro
Fertilizers can enhance the overall customer experience and build lasting relationships.

3. VALUE FOR MONEY: Engro Fertilizers' competitive pricing strategy ensures that customers
receive value for their money. Offering products at reasonable prices relative to their quality helps to
enhance customer satisfaction.

RETENTION:
Retention Ratio: Engro Fertilizers' retention rate of 91% indicates that a significant portion of
customers who purchase from the company continue to do business with them in subsequent years.
This high retention rate suggests that customers are satisfied with Engro Fertilizers' products and
services, leading to continued loyalty.

ACQUISITION:
Brand building: Engro Fertilizers' investment in brand building through advertising, public relations,
and social media aims to create a strong brand image associated with quality, innovation, and
reliability. These efforts help to attract new customers and establish a positive perception of the
company.
Partnerships and accessibility: Engro Fertilizers' collaborations with leading retailers increase the
availability and accessibility of their products to farmers. By expanding distribution channels, Engro
Fertilizers can reach a wider customer base and attract new customers.
Customer loyalty programs: Engro Fertilizers' customer loyalty programs, such as the "Engro Rewards"
program, are designed to strengthen customer relationships. These programs incentivize repeat
purchases and provide additional benefits, fostering customer loyalty and satisfaction.

• nitrogen fertilizers
• engro urea
• engro zabardast urea
• engro ammonium sulphate
• phosphatic fertilizers
• engro dap
• engro np plus
• engro zorawar
• potash fertilizers
• engro zarkhez
• engro zarkhez plus
• engro zarkhez khaas
• engro mop
• engro sop

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 • micronutrient fertilizers
• engro zingro
• engro zoron
• water soluble fertilizers
• engro potash power
• engro phos power

CUSTOMER SATISFACTION KEY PERFORMANCE MEASURE:

➢ Customer encounters:

Customer satisfaction score (CSAT) is a commonly used key performance measure to assess the level
of satisfaction customers have with a company's products or services. The score is usually measured
on a scale, often ranging from 1 to 100, where a higher score indicates higher satisfaction.
In the case of Engro Fertilizers, their customer satisfaction score is 90 out of 100. This means that 90%
of their customers have expressed satisfaction with their experience with Engro Fertilizers. It suggests
that a majority of customers are content with the products or services provided by Engro Fertilizers.
To calculate the customer satisfaction score, Engro Fertilizers likely collects feedback from customers
through surveys, interviews, or other feedback mechanisms. The score can be calculated by
aggregating the responses received and determining the percentage of customers who reported being
satisfied with their experience. Customer encounters are also an important factor in assessing
customer satisfaction. A customer encounter refers to any direct interaction between a customer and
a service provider that is relevant to the core service offering. These encounters can take place
through various channels such as face-to-face interactions, phone calls, online interactions, or any
other medium.

1. Face-to-face interactions: This includes customers visiting Engro Fertilizers' physical locations
such as stores, offices, or service centers to inquire about products, make purchases, seek assistance,
or provide feedback.

2. Phone calls: Customers may contact Engro Fertilizers' customer service or sales representatives
via phone to ask questions, place orders, resolve issues, or seek information about products and
services.

3. Online interactions: Customers may interact with Engro Fertilizers through various online
channels, such as their website, social media platforms, or email. This can involve activities like
submitting inquiries, placing orders, requesting support, or leaving reviews and feedback.

4. Product deliveries: When Engro Fertilizers delivers products to customers, the interaction
between the delivery personnel and the customer can also be considered a customer encounter. The
professionalism, timeliness, and accuracy of the delivery process can influence customer satisfaction.

5. After-sales support: Engro Fertilizers may provide post-purchase support or assistance to

customers, such as addressing product-related issues, handling returns or exchanges, or providing
technical support. These interactions contribute to the overall customer experience
From the provided information about Engro Fertilizer, we can see that the company focuses on two
key performance measures from an organizational perspective: Leadership Quality and Use of
Technology.

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LEADERSHIP QUALITY:
Engro Fertilizer places a strong emphasis on leadership quality, and it is evident from two main
aspects:

1.Employees' Perception of Leadership: The company's employees have a positive perception

of the leadership within the organization. This indicates that employees view the leaders at Engro
Fertilizers in a favorable light, which can lead to increased morale, engagement, and overall
satisfaction in the workplace. A high satisfaction rate with leadership suggests that the company's
leaders are effective in guiding and motivating their teams.

2.Leadership Development Programs: Engro Fertilizers actively invests in leadership

development programs. These programs are designed to enhance the skills and knowledge of the
company's leaders. By providing continuous training and development opportunities to its leaders,
Engro aims to equip them with the tools they need to be more effective in their roles. This can lead to
better decision-making, improved team management, and ultimately contribute to the overall success
of the organization.

USE OF TECHNOLOGY:
Engro Fertilizers recognizes the significance of technology in optimizing its operations and staying
competitive in the market:

1.Investment in Technology: The company allocates substantial resources to invest in

technology. By leveraging technology, Engro aims to enhance its operational efficiency, improve
customer service, and boost employee productivity. This may include adopting advanced machinery,
software solutions, and automation processes that can streamline various aspects of the business.

2.Use of Data Analytics: Engro Fertilizers employs data analytics to make informed and data-
driven decisions. Utilizing data can help the company monitor its performance, identify patterns and
trends, and predict future outcomes. This analytical approach enables the company to respond
proactively to market changes and customer demands, making it more adaptable and responsive in a
dynamic business environment.

3.Development of New Technologies: Engro Fertilizers' commitment to developing new

technologies indicates its determination to innovate and lead in the industry. By continuously
researching and developing cutting-edge technologies, the company aims to differentiate itself from
competitors and remain at the forefront of the fertilizer industry.

COMMON EXAMPLES OF OPERATIONS PERSPECTIVE:

KEY PERFORMANCE MEASURES:
➢ 1. Cycle time:
It refers to the time it takes to complete a specific operation or process, such as the
time it takes to produce a batch of fertilizer. Engro Fertilizer measure and monitor
cycle times to improve efficiency and reduce production time. The total cycle time for
Engro fertilizer can vary depending on the type of fertilizer being produced and the
availability of raw materials. However, the average cycle time is typically around 4
weeks. For example, measuring the cycle time for the production of a specific fertilizer
product can help Engro identify bottlenecks and areas for improvement.

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➢ 2. Process throughputs:
It refers to the rate at which a process or operation can produce output, such as the
number of bags of fertilizer produced per hour or the volume of fertilizer produced
per day. For example, Engro Fertilizers' plant in Port Qasim has a production capacity
of 1.2 million tons of urea per year. This means that the plant can produce an average
of 33,000 tons of urea per month. The throughput of Engro Fertilizer is important
because they determine how much fertilizer the company can sell. The higher the
throughputs, the more fertilizer the company can sell, and the more revenue it can
generate. Engro Fertilizer is constantly working to improve its process throughputs.
The company is investing in new technologies that can help to increase the capacity
of its production facilities.
➢ 3. Transaction costs:
it refers to the costs associated with conducting business operations, such as the costs
of purchasing raw materials, processing orders, or transporting finished products.
Engro Fertilizer may measure and control transaction costs to improve profitability
and cost efficiency. For example, measuring the transaction costs for purchasing raw
materials or transporting finished products can help Engro in identifying cost-saving
opportunities. Engro Fertilizers is constantly working to reduce its transaction costs.
The company believes that this is essential for its future growth and success. By
reducing transaction cost, Engro gets the benefit of customer satisfaction. Increased
profit and increased market share.
➢ 4. Process cycle times:
It refers to the time required for a complete process or operation to finish, including
all the steps involved. Engro Fertilizer measures and analyzes process cycle times to
identify bottlenecks, streamline operations, and reduce lead times. Engro Fertilizers is
constantly working to improve its cycle time. The company is investing in new
technologies that can help to streamline the production process and reduce the
amount of time it takes to get fertilizer to farmers. For example, Engro Fertilizers has
recently invested in a new ammonia plant that is expected to reduce the company's
production time by 30%. The company is also working on improving its quality control
process and its packaging and shipping process.
➢ 5. Customization:
It refers to the ability to tailor products or services to meet specific customer
requirements. Engro Fertilizer measure their ability to customize fertilizer blends,
packaging options, or delivery schedules to enhance customer satisfaction and meet
market demands. Engro can use customization to differentiate its products from those
of its competitors. For example, Engro is offering a customized fertilizer blend that is
tailored to the specific needs of a particular customer. The company believes that by
customizing fertilizers, it can help to improve crop yields, reduce fertilizer costs,
improve soil health, and increase environmental sustainability.
➢ 6. Use of standardized parts:
Engro Fertilizers uses standardized parts in its production process to improve
efficiency, reduce costs, and ensure quality. Standardized parts are parts that are
made to the same specifications and can be used interchangeably. This means that
Engro Fertilizers can use the same parts in different machines and equipment, which
can help to reduce the number of different parts that the company needs to keep in
stock. Using standardized parts also helps to improve quality. When all of the parts in

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 a machine or piece of equipment are the same, it is less likely that there will be
problems with compatibility or performance. This can help to ensure that Engro
Fertilizers' products are consistently high-quality. Finally using standardized parts can
help to reduce costs. When Engro Fertilizers orders large quantities of standardized
parts, it can often get a lower price per part. This can save the company money in the
long run.
7. Reduction in boundary crossings:
Engro Fertilizers has taken a number of steps to reduce boundary crossings in its production
process. These steps include:
• Implementing a standardized operating procedure (SOP) for all production activities.
This SOP clearly defines the roles and responsibilities of each employee involved in the
production process, as well as the steps that need to be taken to ensure that the
process is carried out safely and efficiently.
• Establishing a system of checks and balances to ensure that the SOP is being
followed. This includes regular audits of the production process, as well as random
inspections by supervisors.
• Creating a culture of safety and compliance within the company. This includes
emphasizing the importance of safety and compliance in all communications with
employees, as well as providing incentives for employees who follow the SOP and
report any violations.
As a result of these steps, Engro Fertilizers has seen a significant reduction in boundary
crossings in its production process. In 2021, the company had only 10 boundary crossings,
compared to 50 in 2020. This reduction has helped to improve the safety of the production
process and to reduce the risk of accidents.
Engro Fertilizers' operations perspective is focused on providing farmers with the products
and services they need to increase crop yields and improve their livelihoods. The company
is committed to operating in a sustainable manner and is working to develop new and
innovative fertilizer products that meet the needs of farmers and the environment.

GROWTH AND INNOVATION KEY PERFORMANCE MEASURES:

Research clearly shows that growth and innovation are the lifelines for any market-based
company.

NUMBER OF NEW PRODUCTS ON MARKET:

The number of new products launched in the market can indeed be considered as a key
performance measure for a company. Engro fertilizers has introduced several new products
in the market like Engro zarkhez, Engro DAP, Engro urea and Engro Nitrogenous phosphate.

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PERCENT OF ADOPTED EMPLOYEE SUGGESTION:
It refers to the proportion of employee generated ideas or proposals that the company
accepts and put into practice. The Engro family enjoys a culture of respect, trust, and
recognition where the ideas of employees are heard, evaluated and then implemented if it is
deemed viable and valuable and to encourage a culture of suggestion sharing the employees
are often recognized and rewarded that increases the employee engagement rate to 91%.
TRAINING INVESTMENT:
The training investments are crucial for staying competitive in the market. Engro fertilizers
focuses on providing targeted training programs to improve the technical expertise and
professional skills of its employees. For example, Engro set up an Engro learning center at the
University of Faisalabad and a campaign named Grow more wheat that aimed at increasing
crop yield.
DEVELOPING A BALANCED SCORECARD:
A balanced scorecard is a performance metric used to identify, improve, and control a
business's various functions and resulting outcomes. It involves measuring four main aspects
of a business: Learning and growth, business processes, customers, and finance. The
scorecard can provide information about the firm as a whole when viewing company
objectives. Engro Fertilizers' is collected the information and analyzed from four aspects:
Learning and Growth:
Engro Fertilizers places a strong emphasis on learning and growth by investing in training and
knowledge resources. They ensure that employees have access to relevant information and
encourage them to convert this knowledge into a competitive advantage. The company also
values employee volunteering, tracks the quantity of waste generated, and monitors social
contributions through the digital media performing department on a monthly and half-yearly
basis.
Business Processes:
Engro Fertilizers evaluates its business processes to identify gaps, delays, bottlenecks,
shortages, or waste in product manufacturing. They pay close attention to operational
management, seeking to improve order fulfillment time, employee satisfaction rate, and time
to market. These performance indicators are monitored on a monthly and quarterly basis
using Management Information Systems (MIS), employee feedback, and customer reviews.
Customer Perspectives:
Engro Fertilizers is committed to gauging customer satisfaction with their products and
services. They actively seek feedback from customers to understand their satisfaction levels
regarding quality, price, and availability. Key metrics include the number of customers
retained, customer satisfaction scores, and average resolution time for addressing customer
concerns
Financial Data:
Engro Fertilizers analyzes financial data to assess its overall financial performance. They
consider sales, expenditures, and income to understand the company's financial health. In
their balanced scorecard, they include financial indicators such as dollar amounts, financial
ratios, budget variances, and income targets. Key financial performance metrics for Engro
Fertilizers include revenue growth, inventory turnover, and current accounts payable

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ANALYSIS OF ENGRO FERTILIZERS:
Engro Fertilizers has established an implementation team comprising representatives from
different departments, including human resources. This team collaborates to make informed
decisions and ensure the validity of the scorecard. They follow a strategic focus based on
comprehensive research and use facilitators to guide the process and set ground rules.
During the scorecard development, Engro Fertilizers determines strategic goals, identifies key
performance measures for each perspective, sets target measures, and designs data
collection techniques. They also identify integration opportunities with existing systems to
enhance the effectiveness of the scorecard.
Engro Fertilizers promotes a culture of transparency and communication. They frequently
discuss scorecard results and utilize quarterly management meetings as a platform for sharing
updates and insights. Additionally, they conduct regular statistical tests to validate the
scorecard's effectiveness and maximize financial outcomes.
By leveraging the balanced scorecard approach, Engro Fertilizers strives to achieve
performance excellence across various dimensions, enabling them to drive growth and
maintain a competitive edge in the fertilizer industry.
DEVELOPING A CORPORATE SCORECARD:
ENGRO FERTILIZERS CASE STUDY:
The evolution of a corporate scorecard is an iterative process that often encounters
challenges and setbacks. It requires the focused attention and deliberate action of senior
management. In the case of Engro Fertilizers, the success or failure of their strategic initiatives
will be closely tied to the results of their corporate scorecard.
Establish Corporate Scorecard Teams:
Engro Fertilizers should carefully select members for the scorecard teams, considering their
representation, support, and knowledge of performance measures. There should be a design
team responsible for making decisions about the scorecard's structure, and an
implementation team that supports the design team. The implementation team should
include representatives from Human Resources, Organizational Effectiveness, and a
statistician with expertise in key performance measures and data analysis.
Research:
Engro Fertilizers should invest time in researching articles and books on corporate scorecards
and key performance measures. While customizing the scorecard to their specific needs and
strategic focus, they can gain insights from the experiences of other companies that have
implemented scorecards successfully.
Individual Interviews:
To ensure an unbiased and objective approach, Engro Fertilizers should consider having an
external facilitator conduct individual interviews with the corporate scorecard design team.
These interviews should cover topics such as strategic focus, goals, activity drivers, lagging
and leading performance measures, current performance measurement systems, the need
for multiple scorecards, and any resistance to implementing the scorecard.
Set Ground Rules:
It is crucial to establish ground rules for developing the corporate scorecard. Engro Fertilizers
should use a facilitator to run the meetings, ensuring objectivity and smooth facilitation. They
should approach the process with an open mind, starting with a clean slate and not limiting

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the scorecard to only output or outcome measures. The company should be realistic about
the number of key performance measures and data requirements.
Introductory Meeting and Pre-reading:
Engro Fertilizers should schedule an introductory meeting where they can present the
information collected from the interviews and discuss the purpose and outcomes of the
scorecard development process. It is advisable to distribute pre-reads to the corporate
scorecard design team members two weeks before the meeting.
First Design Team Meeting:
During this meeting, Engro Fertilizers should review the strategic focus, determine strategic
goals, identify lagging and leading performance measures for each perspective, set first-year
target measures, and discuss data collection techniques and ownership. Consensus should be
reached on these aspects and documented in a corporate scorecard design worksheet.
Consolidate Information from First Meeting:
Engro Fertilizers should consolidate the agreed-upon key performance measures, issues, and
concerns. If possible, they can run computer simulations to test the validity of the scorecard
and financial outcomes. The findings should be reported to the design team, and feedback
should be collected within two weeks.
Second Design Team Meeting:
Engro Fertilizers should discuss the findings from the report in this meeting. If applicable, they
can provide an explanation of any computer simulations conducted. Additional suggestions
or changes can be discussed, and a communication plan and implementation timetable can
be developed. Preparing for a middle managers meeting should also be part of this stage.
Middle Managers Meeting:
During this meeting, Engro Fertilizers' corporate scorecard design team should discuss how
the scorecard will be used by middle management, the rationale behind it, strategic goals,
lagging and leading performance measures, implementation timetable, depth and breadth of
the rollout, and the expectations of middle managers. It is crucial to ensure alignment and
understanding among middle managers.
Linkage and Alignment:
Engro Fertilizers should focus on ensuring that each middle manager embraces the scorecard
and is accountable for its implementation. They should eliminate conflicting measurement
systems and align performance appraisals and rewards with the corporate scorecard.
Communication:
Regular and transparent communication is vital for successful implementation. Engro
Fertilizers should communicate frequently with all employees about the scorecard's results,
its impact on decision-making, and progress towards strategic goals. The scorecard should be
used as a framework for management meetings and employee communication.
Statistically Test the Scorecard:
Engro Fertilizers should conduct regular statistical analyses to evaluate the performance of
the scorecard in predicting financial outcomes. This will help identify any areas where the
scorecard may need adjustments or improvements. The analysis should be performed within
a certain confidence level to ensure accuracy.
Continuous Improvement:
Engro Fertilizers should periodically review and update the scorecard to reflect changes in the
strategic focus, business environment, and performance measures. They should seek

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feedback from stakeholders, measure the scorecard's effectiveness, and make necessary
adjustments to ensure it remains a valuable tool for driving performance.
SCORECARD CAVEATS OF ENGRO FERTILIZER:
Here are some of the key caveats of Engro Fertilizer:

Dependence on the Pakistani market:

Engro Fertilizer is heavily dependent on the Pakistani market. The company generates the
majority of its revenue from sales in Pakistan. This exposes the company to risks associated
with the Pakistani economy, such as political instability and economic volatility.

High input costs:

The cost of fertilizer production is high in Pakistan. This is due to a number of factors, including
the high cost of energy and raw materials. The high cost of input materials puts pressure on
Engro Fertilizer's margins.
Competition from imported fertilizer:
Engro Fertilizer faces competition from imported fertilizer. The Pakistani government has
been liberalizing its trade policies in recent years, which has led to an increase in imports of
fertilizer. This has put pressure on Engro Fertilizer's market share.
Environmental regulations:
Engro Fertilizer faces increasing environmental regulations in Pakistan. The Pakistani
government is taking steps to reduce pollution and protect the environment. These
regulations could increase Engro Fertilizer's costs and make it more difficult for the company
to operate.
Sustainability concerns:
The use of fertilizer can have negative environmental impacts. Engro Fertilizer is committed
to sustainable agriculture, but the company faces challenges in reducing its environmental
impact.

Overall, Engro Fertilizer is a well-established company with a strong track record. However,
the company faces a number of challenges, including dependence on the Pakistani market,
high input costs, and competition from imported fertilizer, environmental regulations, and
sustainability concerns. The company will need to address these challenges in order to
continue to be successful.

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EXAMPLES
Some specific examples of Engro Fertilizer's challenges:

➢ In 2021, the Pakistani rupee depreciated significantly against the US dollar. This made it
more expensive for Engro Fertilizer to import raw materials and equipment. The
company's margins were squeezed as a result.
➢ In 2022, the Pakistani government imposed a ban on the import of urea. This was done in
an effort to protect the domestic fertilizer industry. However, the ban caused a shortage
of urea in Pakistan, which led to higher prices for farmers. Engro Fertilizer was able to
benefit from the shortage, but it also faced criticism from farmers who were unable to get
the fertilizer they needed.
➢ In 2023, the Pakistani government announced plans to increase the price of fertilizer. This
was done in an effort to reduce the government's subsidy on fertilizer. However, the price
increase is expected to put pressure on Engro Fertilizer's margins.

Engro Fertilizer is working to address these challenges. The company is investing in research
and development to develop new, more efficient fertilizer products. The company is also
working to reduce its dependence on the Pakistani market by expanding its exports. Engro
Fertilizer is committed to sustainable agriculture and is working to reduce its environmental
impact

CONCLUSION:
The company believes that it can overcome these challenges and continue to be successful in the
future. Engro Fertilizer is a well-managed company with a strong financial position. The company has
a long history of innovation and is committed to sustainable agriculture.

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 WRITEUP CONTRIBUTION

TASK COMPLETED BY
1.What Is Corporate Scorecard
Nisha Zafar

2.Scorecard Perspective Of EFERT

Rabia Zaib

3.Leading & Lagging Measures of Engro Fertilizer

Syeda Hafsa Shariq
4.Qualitative & Quantitative Measures and Economic Value
Added Muniba Fazal

5.Customer Satisfaction Key Performance

Arooba
6. Common Examples of Operations Perspective
Unzila Naeem
7.GROWTH AND INNOVATION KEY PERFORMANCE MEASURES Sobia Azhar

8. Developing A Balanced Scorecard Tehseen Arshad

9.Developing A Corporate Scorecard: Engro Fertilizers Case Study Tehseen Arshad

10.Scorecard Caveats of Engro Fertilizer Pakistan Muneeba Aleem

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CHAPTER NO. 06 BUSINESS PLANNIG PROCESS:
BUSINESS PLANNING PROCESS:
Engro Fertilizers Pakistan follows a structured business planning process to effectively plan
and execute its operations.
a) Environmental Analysis:
Engro Fertilizers starts the business planning process by conducting a thorough analysis of the
external environment. This involves assessing the industry trends, market conditions,
competition, regulatory factors, and any other external factors that may impact the business.
1) Industry Trends:
Increasing global demand for food: The growing global population and changing dietary
patterns have increased the demand for agricultural products, including fertilizers, to
enhance crop yields.
Sustainable agriculture practices: There is a rising focus on sustainable agriculture,
promoting the use of environmentally friendly fertilizers and practices to minimize the impact
on soil health, water quality, and ecosystem balance.
Precision agriculture and digital technologies: Technological advancements in precision
agriculture, including the use of remote sensing, drones, and data analytics, are gaining
traction. These technologies optimize fertilizer application and improve crop productivity.
2) Market Conditions:
Price volatility: Fertilizer prices are subject to fluctuation due to factors like changes in raw
material costs, energy prices, currency exchange rates, and global supply and demand
dynamics.
Crop prices: Engro Fertilizers' market conditions are influenced by commodity prices,
particularly crop prices, as they impact farmers' purchasing power and fertilizer demand.
3) Competition:
Domestic competitors: Engro Fertilizers faces competition from other fertilizer companies
operating within Pakistan, such as Fatima Fertilizer, Fauji Fertilizer, and Dawood Hercules.
International competitors: The company may also face competition from international
fertilizer manufacturers that export to Pakistan or operate in neighboring countries.
4) Regulatory Factors:
Government policies and subsidies: Engro Fertilizers' operations are subject to government
policies, regulations, and subsidies related to the fertilizer industry, which can impact pricing,
production, import/export, and quality standards.

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Environmental regulations: Regulatory measures may focus on environmental sustainability,
such as guidelines for fertilizer application, waste management, and emission controls.
5) Other External Factors:
Climate change and weather patterns: Changing weather conditions, including droughts,
floods, and variations in temperature and rainfall, can affect agricultural productivity and
fertilizer demand.
Currency exchange rates: Engro Fertilizers' financial performance can be influenced by
fluctuations in currency exchange rates, particularly if it engages in international trade for
sourcing raw materials or exporting products.
Technological advancements: Advancements in fertilizer production technologies, research
and development, and agricultural practices can impact the competitive landscape and the
demand for innovative fertilizers.
b) Internal Assessment:
The company evaluates its internal capabilities, strengths, weaknesses, resources, and
competencies. This helps in identifying areas of improvement and determining the company's
core competencies that can be leveraged for competitive advantage.
1. Internal Capabilities:
Manufacturing and Production Expertise: Engro Fertilizers may possess strong capabilities in
fertilizer manufacturing and production processes, including knowledge of formulation,
blending, and quality control.
Research and Development: The company may have internal R&D capabilities to develop new
fertilizer products, improve existing formulations, and explore innovative agricultural
solutions.
Distribution and Logistics: Engro Fertilizers might have an efficient distribution network and
expertise in managing the transportation and logistics of its products to reach farmers and
customers effectively.
2. Strengths:
Brand Recognition: Engro Fertilizers may have a well-established and recognized brand in the
fertilizer industry, providing a competitive advantage and customer trust.
Product Portfolio: The company might offer a diverse range of fertilizer products tailored to
meet the specific needs of different crops and soil conditions, catering to a wide customer
base.
Scale and Production Capacity: Engro Fertilizers could have significant production capacity,
allowing for economies of scale and the ability to meet large-scale fertilizer demands.

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 3. Weaknesses:
Dependency on Raw Materials: Like many fertilizer companies, Engro Fertilizers may be
vulnerable to fluctuations in the prices and availability of raw materials, such as natural gas,
sulfur, and phosphates.
Regulatory Compliance: The company may face challenges in complying with evolving
environmental regulations and industry standards related to waste management, emissions
control, and sustainable practices.
Geographic Concentration: If Engro Fertilizers primarily operates within a specific region or
country, it could be exposed to risks associated with a concentrated market presence and
limited diversification.
4. Resources:
Manufacturing Facilities: Engro Fertilizers may possess production plants, storage facilities,
and related infrastructure necessary for fertilizer manufacturing and distribution.
Financial Resources: The company could have access to capital, financial reserves, and funding
sources to support its operations, investments, and growth strategies.
Human Capital: Engro Fertilizers might have a skilled workforce with expertise in agronomy,
engineering, marketing, research, and other key areas relevant to the fertilizer industry.
5. Competencies:
Customer Relationships: Engro Fertilizers may have built strong relationships with farmers,
distributors, and agricultural stakeholders, providing customer insights and loyalty.
Technological Expertise: The company could possess expertise in adopting and leveraging
advanced technologies and digital solutions for precision agriculture and fertilizer
management.
Sustainability Focus: Engro Fertilizers might have a competency in incorporating sustainable
practices into its operations, such as resource conservation, waste management, and
reducing environmental impact.
c) Goal Setting:
Engro Fertilizer has a very clear vision and mission. The company’s vision is “leading provider
of innovative and sustainable agricultural solutions, contributing to the growth and prosperity
of the agriculture sector”. The company’s mission is “enhance agricultural productivity and
profitability by delivering high-quality fertilizers, leveraging advanced technologies, and
providing comprehensive support to farmers.”.

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These statements provide a clear version of Engro attractive business planning strategy.

FINANCIAL BUSINESS OF ENGRO FERTILIZER:

Revenue: Engro Fertilizer's Q1 2023 revenue amounted to PKR 43,991 million, showing a
significant increase compared to PKR 36,813 million in Q1 2022. This growth in revenue was
primarily driven by an increase in urea prices.
Profit After Tax (PAT): The company's PAT for Q1 2023 stood at PKR 4,404 million, which was
lower than the PKR 5,511 million recorded in the same period last year. The decrease in PAT
was attributed to higher gas prices and lower margins on phosphate.
Urea Sales: Engro Fertilizer's urea sales for the period reached 551 KT, slightly higher than the
549 KT recorded in Q1 2022. The company's market share for urea sales during this period
was 34%.
Phosphate Sales: Phosphate sales for Q1 2023 amounted to 65 KT, compared to 79 KT in the
same period in 2022, reflecting a decrease in sales volume.
International Urea and Phosphate Prices: International urea prices witnessed a significant
decrease, falling to USD 253/ton by the end of March 2023. International phosphate prices
also decreased to USD 603/T due to a decline in global crop prices.
Import Substitution: The local fertilizer industry, including Engro Fertilizers, ensured the
availability of locally produced urea to farmers at a significant discount of approximately 37%
compared to international prices. This resulted in import substitution worth USD 410 million
for the industry in Q1 2023, with Engro Fertilizers contributing USD 139 million.

ANALYSIS OF CORPORATE SCORECARD:

A corporate scorecard is a strategic management tool that provides a comprehensive view of
a company's performance and progress towards its strategic objectives. It typically includes a
set of key performance indicators (KPIs) that measure various aspects of the organization's
performance, such as financial, customer, internal processes, and learning and growth
perspectives.
The specific KPIs and metrics included in a corporate scorecard vary depending on the
company's goals and strategies. The scorecard allows management to track performance,
identify areas of strength and weakness, and make data-driven decisions to drive
improvement and achieve organizational objectives.

• Engro Fertilizer uses the balanced scorecard to measure its performance against its
strategic objectives.
• Have number of KPIs like: Cash flow, Return on equity (ROE), Customer retention,
Customer Satisfaction, Employee satisfaction, Turnover ratio and leadership ratio.
• Multiple perspective
• Financial
• Customers

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 • Internal Process
• Learning and Growth
• Compare actual performance with targets
• Reasons for not achieving targets
• Activities need to reinforce
• Find the root cause?

ENVIRONMENTAL SCAN:
INTRODUCTION:
Environmental scan allows organization to gather information about the external
environment. The purpose of environmental scan is to identify opportunities and threats that
may impact the organization the identification and monitoring of factors from both inside and
outside the organization that may impact the long-term viability of the organization
An environmental scan of Engro Fertilizers involves analyzing the external factors and trends
that can impact its operations and industry
To assess the environment for Engro Fertilizers' existing products and services, we can
consider various factors that influence their demand, market positioning, and sustainability.
Here's an evaluation of the environment:

MARKET DEMAND:
Agricultural Sector Growth: The growth and performance of the agricultural sector in Pakistan
directly impact the demand for fertilizers. Factors such as government policies, weather
conditions, and crop prices influence farmers' purchasing decisions. Monitoring the overall
growth of the agricultural sector and specific crop trends is crucial for Engro Fertilizers.

COMPETITOR ANALYSIS:
Market Competition: Engro Fertilizers operates in a competitive market with both local and
international players. Assessing competitors' product offerings, pricing strategies, distribution
networks, and market share is essential to understand the company's competitive position
and identify areas for differentiation.

POLITICAL FACTOR:
Government has introduced following major incentives through the latest Fertilizer Policy. To
fulfill local demand of fertilizers at affordable prices,
Government is providing subsidy on production and import of fertilizers and is also providing
concessionary feed stock gas to the fertilizer plants for production of urea. Custom duty on
import of rock phosphate and phosphorous by the manufacturers for production of fertilizer
is waived. Tax remissions / relaxations have been offered under the new Fertilizer Policy by
the Government under the NEW Fertilizer Policy and Gas price has been fixed for ten years
for new investments

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ECONOMICAL FACTOR:
The rock phosphate and phosphorous as the essential ingredients for production of fertilizer
and the government is providing major financial incentive to manufacturers, which include
tax exemptions to the manufacturers to attract new entrants in the industry.
The Export benefits available to the manufacturers under the new Fertilizer Policy as suppliers
of capital goods for new and modernization projects through reduced dependence on
imported fertilizers through enhanced local production capacity under the given incentives
provides exclusive relief improving the overall macro-economic indicators for the country
Agriculture is one of the dominant sectors contributing to the country’s economy as it caters
for 22 percent of the overall GDP of the country and accounts for livelihood of 65 percent of
the Pakistani population and employing roughly 45 percent of the country’s labor force
according to the Economic Survey of 2010-11. Sustainability and growth of the agriculture
sector is largely dependent on production capability of the existing fertilizer industry.

SOCIAL AND ENVIRONMENTAL FACTORS:

Sustainability and Environmental Impact: Growing awareness about environmental
sustainability and the impact of fertilizer use on soil, water, and ecosystems necessitates
responsible practices. Engro Fertilizers should monitor and adapt to evolving social
expectations and regulatory requirements regarding sustainable agriculture and
environmental conservation.
Community Engagement: Engro Fertilizers operates within communities that are directly
impacted by its operations. The company's engagement with local communities, addressing
social issues, and implementing corporate social responsibility initiatives can contribute to its
reputation and social license to operate.

TECHNOLOGICAL FACTORS:
Research and Development: Engro Fertilizers needs to stay abreast of advancements in
agricultural technology, including fertilization techniques, crop genetics, and precision
agriculture. Incorporating new technologies and practices can enhance the company's
competitiveness and efficiency.
Digitalization and Data Analytics: The use of digital technologies and data analytics can help
optimize fertilizer usage, improve supply chain management, and enhance customer service.
Engro Fertilizers can explore opportunities to leverage digital tools and platforms to drive
operational excellence.

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Here is an assessment of the environment for Engro Fertilizer's existing
products and services:

➢ Current and potential customers: Engro Fertilizer's current customers are primarily
farmers in Pakistan and the Middle East. The company's potential customers include
farmers in other parts of the world, as well as businesses that use fertilizer in their
products.
➢ New products and services from other industries: There are a number of new
products and services from other industries that could compete with Engro Fertilizer.
For example, there are new technologies that can be used to produce fertilizer from
renewable resources. These technologies could pose a threat to Engro Fertilizer if they
become more cost-effective than traditional fertilizer production methods.
➢ What's happening internationally: The global fertilizer market is growing, and there
is increasing demand for fertilizer in developing countries. This could be an
opportunity for Engro Fertilizer to expand its business internationally. However, the
company will need to be aware of the challenges of operating in new markets.
➢ The future of Engro Fertilizer: The future of Engro Fertilizer depends on a number of
factors, including the growth of the global fertilizer market, the development of new
fertilizer technologies, and the company's ability to compete in new markets. If the
company is able to adapt to the changing environment, it could be well-positioned for
future growth.

CUSTOMER FEEDBACK OF ENGRO FERTILIZER:

Engro Fertilizer is known for its high-quality products and services in the fertilizer industry.
They have a strong reputation for providing effective fertilizers and agricultural solutions to
farmers. Their products are often praised for their positive impact on crop yield and overall
agricultural productivity. Additionally, Engro Fertilizer is recognized for their commitment to
sustainability and environmental responsibility. While individual customer experiences may
vary, Engro Fertilizer generally receives positive feedback for their products and services.
Here are some key themes that emerge from customer feedback analysis:

1. Quality Products: Customers appreciate the high-quality fertilizers offered by Engro.

Many users have reported improved crop yields and healthier plants after using their
products.

2. Effective Results: Engro Fertilizer's products have been praised for their effectiveness
in enhancing soil fertility and increasing crop production. Farmers have noted noticeable
improvements in their harvests after using Engro fertilizers.

3. Reliable Supply: Customers have expressed satisfaction with Engro's consistent and
reliable supply chain, ensuring that their fertilizers are readily available when needed.

4. Technical Support: Engro Fertilizer offers technical support and guidance to farmers,
helping them make informed decisions about fertilizer selection and application. This

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assistance has been highly valued by customers who appreciate the company's efforts to
educate and support them.

5. Environmental Stewardship: Engro Fertilizer's commitment to sustainable practices

and environmental responsibility has been positively received by customers. Many appreciate
the company's efforts to minimize the environmental impact of their operations.
It's important to note that individual experiences may vary, and this analysis is based on
general trends in customer feedback.

TOOLS USED TO COLLECT CUSTOMER FEEDBACK IN ENGRO FERTILIZER:

Engro Fertilizer Pakistan may use various tools and methods to collect customer feedback.
Here are some commonly used tools in the industry:

1. Customer Surveys: Engro Fertilizer may conduct online or offline surveys to gather
feedback from customers. These surveys can be designed to capture specific information
about product satisfaction, service quality, and overall customer experience.

2. Feedback Forms: Feedback forms can be distributed to customers at various touch

points such as retail stores, events, or through their website. These forms allow customers to
provide structured feedback on their experiences with Engro Fertilizer products and services.

3. Social Media Listening: Engro Fertilizer may monitor their social media channels to
gather customer feedback. They can track mentions, comments, and direct messages to
understand customer sentiment and address any concerns.

4. Customer Support Interactions: Engro Fertilizer's customer support team may

actively collect feedback during interactions with customers. This can be done through phone
calls, emails, or online chat sessions.

5. Online Review Platforms: Engro Fertilizer may monitor online review platforms like
Google Reviews, Trust pilot, or industry-specific forums to gather feedback and reviews from
customers who have used their products.

6. Focus Groups or Interviews: Engro Fertilizer may conduct focus groups or one-on-one
interviews with selected customers to gather in-depth feedback. This method allows for
detailed discussions and insights into customer experiences.

7. in-person Feedback Events: Engro Fertilizer may organize events or meetings where
customers can share their feedback directly with company representatives. This can provide
an opportunity for open dialogue and relationship-building.
It's important to note that the specific tools used by Engro Fertilizer may vary based on their
internal processes and customer engagement strategies.

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GAPS IN CUSTOMER FEEDBACK ANALYSIS:
Based on the customer feedback analysis of Engro Fertilizer, the following gaps were
identified:

1. Communication Gap: Some customers have reported a lack of clear and timely
communication from Engro Fertilizer. This includes issues such as delays in product
information, updates on availability, or response to customer queries.

2. Product Knowledge Gap: There is a perception among some customers that the
technical knowledge and guidance provided by Engro Fertilizer could be improved. They have
expressed a need for more detailed information on product usage, application techniques,
and best practices.

3. Availability Gap: While Engro Fertilizer is generally praised for its reliable supply chain,
there have been instances where customers have faced challenges in accessing their
products. This includes issues such as limited availability in certain regions or delays in
restocking.

4. Customer Support Gap: Some customers have expressed dissatisfaction with the level
of customer support provided by Engro Fertilizer. This includes concerns about response time,
resolution of issues, and overall customer service experience.

5. Sustainability Gap: While Engro Fertilizer is recognized for its commitment to

sustainability, there is a perception among some customers that more can be done in terms
of promoting environmentally friendly practices and reducing the environmental impact of
their products.
It's important for Engro Fertilizer to address these gaps by focusing on improving
communication channels, enhancing product knowledge sharing, ensuring consistent
availability, enhancing customer support services, and further strengthening their
sustainability initiatives. By addressing these areas, Engro Fertilizer can enhance customer
satisfaction and loyalty.

ORGANIZATIONAL GAP ANALYSIS:

Pakistan’s skills gaps: The public education system vs. industry demands
Even though secondary-school enrollment in Pakistan increased from 25% to 38% between
2005 and 2013, education attainment remains at a comparatively low level. And
unsurprisingly, the figures for tertiary education figures are even more modest: enrollment
of 4% in 2005, and about 10% in 2013. However, reports suggest that less than 6% of the
current youth population has acquired any technical skills through Technical and Vocational
Education and Training (TVET). So, the majority of Pakistan’s emerging labor force is lacking
in education or in skills or in both. One problem is that in Pakistan, as in many countries, the
implementation of TVET has shifted between different government departments, whose
mandates partially overlap, hampering good governance and accountability. In line with the
general trend in Pakistan, the province of Sindh, where Engro Fertilizer is located, has very
modest educational attainments. The labor market in Sindh has a dual nature related to two

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 different dynamics – on the one hand, that of the more developed urban centers, like the
metropolitan region of Karachi; and on the other, that of the less developed rural areas.
Daharki, home base of Engro Fertilizer’s main production site, is a business center with
numerous industries, particularly cotton factories and oil- and gas-exploration companies.11
Even though Daharki itself is relatively wealthy, Sindh as a whole is facing major economic
challenges, largely owing to the low skills base of its labor force. An assessment of selected
TVET institutes in the province, conducted by the organization CARE, reveals that these
institutions currently provide services to only a very small fraction of the young population.12
The latter point explains why Daharki’s surrounding district – Ghotki, with a rural population
of more than 80% – is particularly hard hit by a lack of skilled labor. The total skilled labor
force amounts to about 4,500 workers – a mere 3% of the district’s total population. This
shortage partly accounts for the district’s serious unemployment problem.
➢ Engro’s skills gaps: By virtue of being among Pakistan’s top employers and very popular
with graduates, Engro attracts a large number of applicants from across the country –
amounting to 5-10 times the number of vacancies – and can select the best candidates from
that pool.13 The company has a low attrition rate (by Pakistani standards) of about 7%, but
its recruiting needs persist, largely owing to its continuous expansion. Of the employees who
do leave Engro, many go abroad to work in the Middle East or in the United States. A couple
of internal skills gaps affect the company on the operations side – notably, a shortage of
experienced supervisors, and the scarcity of trained technicians and plant operators in the
local community. Figure 1 provides an overview of these internal skills gaps at Engro
Fertilizers.
➢ Administration: Minor shortage of agronomists to work in marketing and sales
In administration, Engro Fertilizers has no difficulty in filling most vacancies with highly-
qualified candidates, and it has a low attrition rate, allowing it to develop its management
personnel and their skills internally. The one recruiting challenge that it does face is that of
finding enough agronomists to work in marketing and sales, where they reach out to clients
and partner companies: these skills are generally rare in the country.
➢ Operations: Difficulties in finding properly trained personnel from the local area
In production, Engro Fertilizers attracts the country’s best engineers, and has no difficulty in
filling vacancies, even though the company is growing continuously. And as for unskilled labor,
there is never a shortage, given the region’s high unemployment rate. The main recruiting
challenge for the company has been in finding properly trained technical staff in chemical and
mechanical engineering from the local area around its production site in Daharki. Accordingly,
to acquire the requisite skills, the company has had to hire workers from Karachi or other
areas that are more developed – a policy that has led to criticism from the local population
and the media. Another challenge has been at the supervisory level – i.e. production experts
with 5-6 years of work experience: The solution has been to build these skills internally, and
to gradually develop successors for those employees that leave. Generally, the company’s
need for new production workers and supervisors is constant, as the business is growing
continuously (23% over the last year), and the company is considering expanding to new
markets in Africa or Asia.

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 COMPONENTS OF ACTIVITY BASED BUSINESS PLAN:
Vision:
To be the leading integrated fertilizer company in Pakistan, providing farmers with high-
quality, affordable fertilizers that helps them to increase their crop yields and productivity.
Mission:
To provide farmers with the knowledge, tools, and resources they need to be successful, and
to contribute to the sustainable development of Pakistan's agriculture sector.
Engro Fertilizer is committed to its vision and mission through a number of initiatives,
including:

• Investing in research and development to develop new and improved fertilizer

products that are more efficient and effective.
• Providing farmers with training and education on fertilizer use.
• Working with government and other partners to promote the adoption of sustainable
agricultural practices.

Engro Fertilizer is confident that by working together, we can help to make Pakistan a more
prosperous and food-secure country.

Goals & Objective:

Here are the goals and objectives of Engro Fertilizer:

• Goal 1: To be the leading integrated fertilizer company in Pakistan, providing farmers with
high-quality, affordable fertilizers that helps them to increase their crop yields and
productivity.
• Objective 1: Increase fertilizer production to meet the growing demand of the Pakistani
agriculture sector.
• Objective 2: Develop and introduce new, innovative fertilizer products that are more efficient
and effective.
• Objective 3: Expand the reach of Engro Fertilizer's distribution network to make its products
more accessible to farmers across Pakistan.
• Goal 2: To provide farmers with the knowledge, tools, and resources they need to be
successful, and to contribute to the sustainable development of Pakistan's agriculture sector.
• Objective 1: Provide farmers with training and education on fertilizer use.
• Objective 2: Work with government and other partners to promote the adoption of
sustainable agricultural practices.
• Objective 3: Support research and development initiatives that aim to improve the
productivity of Pakistan's agriculture sector.

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Strategies:
Here are the strategies of Engro Fertilizer

To be the leading integrated Fertilizer Company in Pakistan. Engro Fertilizer will achieve this
by:
• Increasing fertilizer production to meet the growing demand of the Pakistani
agriculture sector.
• Developing and introducing new, innovative fertilizer products that are more efficient
and effective.
• Expanding the reach of Engro Fertilizer's distribution network to make its products
more accessible to farmers across Pakistan.
To provide farmers with the knowledge, tools, and resources they need to be
successful. Engro Fertilizer will achieve this by:
• Providing farmers with training and education on fertilizer use.
• Working with government and other partners to promote the adoption of sustainable
agricultural practices.
• Supporting research and development initiatives that aim to improve the productivity
of Pakistan's agriculture sector.
Activity:
Here is a summary of the activities of Engro Fertilizer:

• Production: Engro Fertilizer produces a wide range of fertilizer products, including

urea, DAP, and NP. The company has a production capacity of 975,000 tons per year.
• Distribution: Engro Fertilizer has a nationwide distribution network that reaches over
100,000 farmers. The company sells its products through a network of dealers and
retailers.
• Marketing: Engro Fertilizer markets its products through a variety of channels,
including print and television advertising, as well as direct marketing to farmers.
• Research and development: Engro Fertilizer invests heavily in research and
development to develop new and improved fertilizer products. The company has a
research and development facility in Karachi, which is staffed by a team of scientists
and engineers.
• Sustainability: Engro Fertilizer is committed to sustainable agriculture. The company
is a member of the World Business Council for Sustainable Development, and is
working to reduce its environmental impact.

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 RESOURCES:
Here are some of the key resources of Engro Fertilizer:

• Financial resources: Engro Fertilizer is a well-funded company with a strong financial position.
The company has a long history of profitability and is able to invest heavily in research and
development, as well as marketing and distribution.
• Human resources: Engro Fertilizer has a highly skilled and experienced workforce. The
company has a team of scientists and engineers who are dedicated to developing new and
improved fertilizer products. The company also has a network of agronomists who provide
training and education to farmers on fertilizer use.
• Physical resources: Engro Fertilizer has a number of physical resources that support its
operations. The company has two fertilizer plants, one in Karachi and one in Multan. The
company also has a nationwide distribution network that reaches over 100,000 farmers.
• Intellectual property: Engro Fertilizer has a number of patents and trademarks that protect
its intellectual property. The company's intellectual property portfolio includes fertilizer
formulations, as well as marketing and distribution strategies.
• Brand equity: Engro Fertilizer is a well-known and respected brand in Pakistan. The
company's brand equity is based on its reputation for quality, innovation, and customer
service.

MONITORING & EVALUTION:

Overall, Engro Fertilizer has a strong marketing strategy. The company uses a variety of
marketing channels to reach its target audience and focuses its marketing messages on the
benefits of using Engro fertilizer products. However, there are some areas where Engro
Fertilizer could improve its marketing, such as focusing on new markets and using social media
more effectively.

PERSPECTIVE:
FINANCIAL:
• The financial perspectives of Engro Fertilizer Pakistan in 2023 are positive.
• The company is expected to continue to grow its revenue and profitability, driven by strong
demand for fertilizers in Pakistan.
• Engro Fertilizer Pakistan's revenue grew by 12% in 2022 to PKR 75.3 billion.
• The company's profit after tax also grew by 13%, to PKR 18.2 billion.

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 CUSTOMER PERSPECTIVE:

Here are some of the key things that Engro Fertilizer Pakistan can do to improve its customer
perspective in 2023:

• Continue to focus on product quality: Engro Fertilizer Pakistan should continue to invest in
research and development to ensure that its products are of the highest quality.
• Offer competitive prices: Engro Fertilizer Pakistan should keep its prices competitive in order
to attract and retain customers.
• Make its products more available: Engro Fertilizer Pakistan should expand its distribution
network to make its products more available to customers.
• Improve customer service: Engro Fertilizer Pakistan should improve its customer service by
providing more responsive and helpful support.
• Innovate its products and services: Engro Fertilizer Pakistan should continue to innovate its
products and services to meet the changing needs of its customers.

ORGANIZATIONAL PERSPECTIVE:
• To its shareholders: Engro Fertilizer Pakistan is a profitable company, and it has a history of
paying dividends to its shareholders. The company's shares are also listed on the Pakistan
Stock Exchange, which gives shareholders the opportunity to trade their shares and realize
capital gains.
• To its employees: Engro Fertilizer Pakistan is a good employer, and it offers its employees
competitive salaries and benefits. The company also provides opportunities for training and
development, which helps its employees to grow and develop their careers.
• To its customers: Engro Fertilizer Pakistan provides high-quality fertilizers that help farmers
to improve their crop yields. The company also offers a wide range of products and services
that meet the needs of its customers.
• To the environment: Engro Fertilizer Pakistan is committed to environmental sustainability.
The company has a number of initiatives in place to reduce its environmental impact, such as
using renewable energy sources and recycling waste materials.

Overall, the organizational value-added perspective of Engro Fertilizer Pakistan in 2023 is

positive. The company is well-positioned to continue to add value to its stakeholders in the
coming year.

OPERATIONAL PERSPECTIVE:
EFP can achieve the operational perspective by continuation investment in technology, invest
in employee training, promote a safety culture and embrace contours improvement.

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GROWTH & INNOVATION PERSPECTIVE:

Here are some of the key ways in which Engro Fertilizer Pakistan enhances its growth and
innovation:

• Investment in research and development: Engro Fertilizer Pakistan invests heavily in

research and development to develop new products and services that meet the needs
of its customers.
• Acquisitions: Engro Fertilizer Pakistan has made a number of acquisitions in recent
years to expand its product portfolio and reach new markets.
• Partnerships: Engro Fertilizer Pakistan has partnered with a number of other
companies to develop new products and services.
• Focus on emerging markets: Engro Fertilizer Pakistan is focused on emerging markets,
where there is a growing demand for fertilizers.

Overall, the growth and innovation perspective of Engro Fertilizer Pakistan in 2023 is positive.

PERFORMANCE PROFILE:
1. Base Plant sustainable production capacity enhancement to 950 KT and improved
long-term reliability through investment in LTR (Long-term Reliability) turnaround
covering the following:
• Base Plant furnace modernization and revamp
• ACES Equipment and converter effluent exchangers replacement
• Base Plant Cooling Water Network revamp

2. Successful commissioning of Urea-3 APC in line with the Company’s pursuit of

digitization.
3. Handled the largest ever fertilizer vessel (59.67 Kt) that arrived at any port in Pakistan
and achieved the highest ever 24-hr fertilizer discharge and shipment (12.29 Kt) within
the fertilizer industry of Pakistan, from any vessel.
4. EFERT sponsored several initiatives aimed at farmer upliftment such as Grow More
Wheat seminars, balanced use of Potash etc. for over 5,000 farmers across major
territories of Sindh and Punjab in 2022.
5. Engro Humsafar App, a FINTECH innovation in the industry and the recipient of 3
Pakistan Digital Awards, achieved PKR 155.5 Billion in sales revenue in 2022.
Furthermore, this application has crossed 285 Billion in Sales Revenue and 149.9
Billion internet payments since its inception.
6. Achieved highest ever revenue for phosphates category despite industry demand
destruction by 39%.

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FINANCIAL PERFORMACE PROFILE:
The performance of Engro fertilizer from 2022- 2023 has been evaluated through its financial
statements which are as follows:
● Revenue: Revenue grew by 10% to PKR 97.3 billion in Q1 2023 from PKR 88.3 billion in Q1
2022.
● Profit: Profit after tax (PAT) declined by 41% to PKR 8.8 billion in Q1 2023 from PKR 14.9
billion in Q1 2022.
● Earnings per share (EPS): EPS declined by 38% to PKR 8.18 per share in Q1 2023 from PKR
13.84 per share in Q1 2022.
● Dividend: The company declared a dividend of PKR 2.5 per share for the quarter, unchanged
from the previous quarter.
● Gross margin: Gross margin declined from 31% in Q1 2022 to 27% in Q1 2023.
● Operating margin: Operating margin declined from 14% in Q1 2022 to 10% in Q1 2023.
● Net debt: Net debt increased from PKR 25.1 billion in December 2022 to PKR 28.8 billion in
March 2023.
The Profit is evaluated and some reasons are found for its decline which includes:
● Increase in raw material prices: The prices of raw materials used in fertilizer production,
such as urea and ammonia, increased significantly in 2022.
● Weaker demand: Demand for fertilizer in Pakistan declined in 2022 due to a number of
factors, including lower crop prices and a delay in the arrival of the monsoon rains.
● Higher finance costs: The company's finance costs increased in 2022 due to higher interest
rates.

❖ Despite the decline in profit, Engro Fertilizers remains a profitable company with a strong
track record.

❖ The company's management has said that they expect profit to improve in the second half
of 2023, as the monsoon rains arrive and demand for fertilizer picks up.

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 WRITE UP CONTRIBUTION:
TASKS GROUP MEMBERS
1- Introduction
Muhammad Rayyan
2- Corporate Scorecard Gap Analysis
3- Environmental Scan Muhammad Usman
4- Customer Feedback Rabia Zaib
5- Organizational Gap Analysis Samia Khan
6- Activity Based Business Plan
Muneeba Aleem
(Perspective)
7- Performance Profile
Muhammad Ahmed
8- Activity Based Business Plan

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